| Indiana                                          |          | 38-3354643          |
|--------------------------------------------------|--------------------------------------------------|---------------------|
| (State or other jurisdiction of incorporation or |                                             | (I.R.S. Employer    |
| organization)                                    |                                             | Identification No.) |
|                                             |                                             |                |
| 2135 West Maple Road                             |                                             |                |
| Troy, Michigan                                   |                                             | 48084-7186          |
| (Address of principal executive offices)         |                                             | (Zip Code)          |

| Title of each class                         |          | Name of each exchange on which registered |
|---------------------------------------------|--------------------------------------------------|-------------------------------------------|
| Common Stock, $1 Par Value (including the   |                                             | New York Stock Exchange                   |
| associated Preferred Share Purchase Rights) |                                             |                                      |

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| Large accelerated filer | x      |                                          | Accelerated filer         | o      |
|-------------------------|--------|-----------------------------------------------|---------------------------|--------|
|                    |   |                                          |                      |   |
| Non-accelerated filer   | o      | (Do not check if a smaller reporting company) | Smaller reporting company | o      |

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| PART I.   |   |     |   |                                                                                                               |   | Page No. |
|-----------|--------|----------|--------|--------------------------------------------------------------------------------------------------------------------|--------|----------|
|      |   | Item 1.  |   | Business                                                                                                           |   | 1        |
|      |   |     |   |                                                                                                               |   |     |
|      |   | Item 1A. |   | Risk Factors                                                                                                       |   | 15       |
|      |   |     |   |                                                                                                               |   |     |
|      |   | Item 1B. |   | Unresolved Staff Comments                                                                                          |   | 24       |
|      |   |     |   |                                                                                                               |   |     |
|      |   | Item 2.  |   | Properties                                                                                                         |   | 25       |
|      |   |     |   |                                                                                                               |   |     |
|      |   | Item 3.  |   | Legal Proceedings                                                                                                  |   | 25       |
|      |   |     |   |                                                                                                               |   |     |
|      |   | Item 4   |   | [Removed and reserved]                                                                                             |   |     |
|      |   |     |   |                                                                                                               |   |     |
|      |   | Item 4A. |   | Executive Officers of the Registrant                                                                               |   | 26       |
|      |   |     |   |                                                                                                          |   |     |
| PART II.  |   |     |   |                                                                                                               |   |     |
|      |   | Item 5.  |   | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |   | 27       |
|      |   |     |   |                                                                                                               |   |     |
|      |   | Item 6.  |   | Selected Financial Data                                                                                            |   | 29       |
|      |   |     |   |                                                                                                               |   |     |
|      |   | Item 7.  |   | Management’s Discussion and Analysis of Financial Conditions and Results of Operations                       |   | 30       |
|      |   |     |   |                                                                                                               |   |     |
|      |   | Item 7A. |   | Quantitative and Qualitative Disclosures About Market Risk                                                         |   | 60       |
|      |   |     |   |                                                                                                               |   |     |
|      |   | Item 8.  |   | Financial Statements and Supplementary Data                                                                        |   | 62       |
|      |   |     |   |                                                                                                               |   |     |
|      |   | Item 9.  |   | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure                               |   | 122      |
|      |   |     |   |                                                                                                               |   |     |
|      |   | Item 9A. |   | Controls and Procedures                                                                                            |   | 122      |
|      |   |     |   |                                                                                                               |   |     |
|      |   | Item 9B. |   | Other Information                                                                                                  |   | 124      |
|      |   |     |   |                                                                                                          |   |     |
| PART III. |   |     |   |                                                                                                               |   |     |
|      |   | Item 10. |   | Directors, Executive Officers and Corporate Governance                                                             |   | 124      |
|      |   |     |   |                                                                                                               |   |     |
|      |   | Item 11. |   | Executive Compensation                                                                                             |   | 124      |
|      |   |     |   |                                                                                                               |   |     |
|      |   | Item 12. |   | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters                     |   | 124      |
|      |   |     |   |                                                                                                               |   |     |
|      |   | Item 13. |   | Certain Relationships and Related Transactions, and Director Independence                                          |   | 125      |
|      |   |     |   |                                                                                                               |   |     |
|      |   | Item 14. |   | Principal Accountant Fees and Services                                                                             |   | 125      |
|      |   |     |   |                                                                                                          |   |     |
| PART IV.  |   |     |   |                                                                                                               |   |     |
|      |   | Item 15. |   | Exhibits and Financial Statement Schedules                                                                         |   | 126      |
|      |   |     |   |                                                                                                               |   |     |
|      |   |     |   | Signatures                                                                                                         |   | 133      |

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- Body Systems  On August 3, 2010, we entered into an agreement to sell our Body Systems business to an affiliate of Inteva Products, LLC. The purchase price is approximately $35 million, including $20 million in cash at closing and a promissory note for $15 million, before potential adjustments for items such as working capital fluctuations. Upon signing, $10 million of the purchase price was placed in escrow pending closing of the sale process. We expect to complete the sale by the end of calendar year 2010, subject to receiving regulatory approvals and other pre-closing matters. 

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- Chassis 

- Meritor Suspension Systems Company (“MSSC”).  In October 2009, the company completed the sale of its 57 percent interest in MSSC, a joint venture that manufactures and sells automotive coil springs, torsion bars and stabilizer bars in North America, to the joint venture partner, a subsidiary of Mitsubishi Steel Mfg. Co., LTD (“MSM”) for a purchase price of $13 million, which included a cash dividend of $12 million received by the company in fiscal year 2009.  
- Our corner module assembly operations in the United States included two locations. We closed one of the locations after completion of the existing supply contracts in March 2010 and completed the sale of the operations of the second location in August 2010. With the closure and sale of these corner module assembly operations, we have completed our divestiture of all light vehicle chassis operations in the United States. 

- The  Commercial Truck  segment supplies drivetrain systems and components, including axles, drivelines and braking and suspension systems, primarily for medium- and heavy-duty trucks in North America, South America and Europe.  
- The  Industrial  segment supplies drivetrain systems including axles, brakes, drivelines and suspensions for off-highway, military, construction, bus and coach, fire and emergency, and other industrial applications.  This segment also includes all of our businesses in Asia-Pacific, including all on- and off-highway activities.  
- The  Aftermarket  & Trailer  segment supplies axles, brakes, drivelines, suspension parts and other replacement and remanufactured parts, including transmissions, to commercial vehicle aftermarket customers. This segment also supplies a wide variety of undercarriage products and systems for trailer applications. 

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- Weakened financial condition of original equipment manufacturers and suppliers;  
- Disruptions in the financial markets and its impact on the availability and cost of credit;  
- Emissions, safety and related regulations affecting the trucking and transportation industries;  
- Cyclicality of these industries, including the effects of new emissions and other regulations for commercial vehicles on vehicle sales and production;  
- Evaluation by OEMs of their outsourcing strategies given capacity and other market conditions;  
- Consolidation and globalization of OEMs and their suppliers;  
- Increasing emphasis on engineering and technology focused on improving vehicle fuel efficiency and safety;  
- Fluctuations in the cost of raw materials, primarily steel and oil;  
- Higher energy and transportation costs;  
- Rapid market growth in developing countries;  
- Pension and retiree medical health care costs; and  
- Currency exchange rate volatility. 

- Reduced production for certain military programs and the return of volumes of selected long-term military contracts to more normalized volume levels from the record production volumes of the past few years;  
- Timing and extent of recovery of the production and sales volumes in commercial vehicle markets around the world;  
- A significant further deterioration or slowdown in economic activity in the key markets we operate;  
- The financial strength of our suppliers and customers, including potential bankruptcies;  
- Higher than planned price reductions to our customers;  
- Volatility in price and availability of steel and other commodities;  
- Any unplanned extended shutdowns or production interruptions by us, our customers or our suppliers;  
- Our ability to successfully complete the sale of our Body Systems business;  
- Additional restructuring actions and the timing and recognition of restructuring charges;  
- Higher than planned warranty expenses, including the outcome of known or potential recall campaigns;  
- Our ability to implement planned productivity and cost reduction initiatives; 

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- Significant contract awards or losses of existing contracts; and  
- The impact of any new accounting standards. 

----

----

- Meritor(R) LogixDrive (TM) .  This axle system is engineered to actively monitor vehicle operating conditions. Enabled by electronic controls, the drive unit constantly senses temperature, speed, braking and torque conditions to apply the optimized amount of lubrication to the axle. The LogixDrive system addresses the two main areas of power loss in axles: gear and bearing friction and oil churning due to gear rotation. The system is expected to be available as an option on drive axle systems beginning in 2012.  
- ArvinMeritor’s Smart Systems Technology . ArvinMeritor’s Smart Systems technology roadmap focuses on improving vehicle system performance through the integration and application of electronics, controls and materials.  
- The Hybrid Class 8 Line-haul Powertrain Concept.  ArvinMeritor delivered a concept hybrid drivetrain system to  Walmart Transportation in January 2009. Although this product is a concept system only and at this juncture we have no orders or contracts to produce it, we intend to pursue this area in the future. While most hybrid systems today are best suited for start-stop applications, our concept hybrid drivetrain is specifically designed for linehaul, over-the-road trucks, the largest segment of the commercial vehicle population and the greatest consumer of diesel fuel on the road. Our concept hybrid drivetrain, the Meritor Multi-Mode Hybrid Powertrain, combines both mechanical and electrical drive systems. The Meritor concept hybrid drivetrain in the Walmart tractor was developed by ArvinMeritor as project leader and in collaboration with Navistar International Corporation and Cummins and is comprised of a proprietary motor/generator unit, high capacity lithium ion batteries, as well as the overall power-management system. 

|                                        |                           | Fiscal Year Ended                               |
|---------------------------------------------|--------------------------------|-------------------------------------------------|
|                                        |                           | September 30,                                   |
|                                        |       | 2010                                            |       | 2009 |       | 2008 |       |
| Axles, Undercarriage and Drivelines         |                           | 73                                              | % | 73 | % | 76 | % |
| Brakes and Braking Systems                  |                           | 24                                              | % | 25 | % | 23 | % |
| Other                                       |                           | 3                                               | % | 2 | % | 1 | % |
|        Total: |                           |          100 | % |          100 | % |          100 | % |
|                                   |

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- In fiscal year 2009, we completed the sale of our 51 percent interest in Gabriel de Venezuela to the joint venture partner.   
- In fiscal year 2009, we completed the sale of our Gabriel Ride Control Products North America business to an affiliate of OpenGate Capital.   
- In fiscal year 2009, we completed the sale of our Wheels business to Iochpe-Maxion S.A., a Brazilian producer of wheels and frames for commercial vehicles, railway freight cars and castings.   
- In fiscal year 2010, we completed the sale of our 57 percent interest in MSSC to the joint venture partner, a subsidiary of Mitsubishi Steel Mfg. Co., LTD.   
- In fiscal year 2010, we completed the sale of our module assembly operations in Belvidere, Illinois. 

----

- In fiscal year 2010, we entered into an agreement to sell our Body Systems business to an affiliate of Inteva Products, LLC. We expect to complete the sale by the end of the calendar year, subject to receiving regulatory approval and other pre-closing matters. 

- Temporary or permanent workforce reductions of approximately 3,000 employees, including full-time,  contract and temporary workers;    
- Plant level furlough programs, including government supported programs;     
- Extended shutdowns at all plants;     
- Temporary pay reductions for salaried employees in North America and, on a voluntary basis, from around  the world, which was achieved through base salary adjustments and/or curtailed production schedules;     
- Temporary suspension of the matching contribution for the U.S. 401(k) plan;     
- Temporary suspension of fiscal year 2009 merit increases for all global employees; and     
- Temporary reduction of Board of Directors annual compensation by 10 percent. 

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|                                         | Key Products                       |       | Country |
|----------------------------------------------|------------------------------------|--------------------------------|---------|
| Meritor WABCO Vehicle Control Systems        | Antilock braking and air systems   |                           | U.S.    |
| Master Sistemas Automotivos Limitada         | Braking systems                    |                           | Brazil  |
| Suspensys Sistemas Automotivos Ltda.         | Suspensions, axles, hubs and drums |                           | Brazil  |
| Sistemas Automotrices de Mexico S.A. de C.V. | Axles, drivelines and brakes       |                           | Mexico  |
| Ege Fren Sanayii ve Ticaret A.S.             | Braking systems                    |                           | Turkey  |
| Automotive Axles Limited                     | Rear drive axle assemblies         |                           | India   |

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|                                                                              | Year Ended September 30, |
|-----------------------------------------------------------------------------------|--------------------------|
|                                                                              | 2010                     |       | 2009 |       | 2008 |       | 2007 |       | 2006 |
| Estimated Commercial Vehicle production (in thousands):                           |                     |   |   |   |   |   |   |   |   |
|        North America, Heavy-Duty and Medium Trucks  | 219                      |   | 204 |   | 316 |   | 422 |   | 568 |
|        North America, Trailers                      | 116                      |   | 95 |   | 176 |   | 275 |   | 312 |
|        Europe, Heavy- and Medium-Duty Trucks        | 265                      |   | 252 |   | 562 |   | 480 |   | 439 |
|        South America, Heavy- and Medium-Duty Trucks | 172                      |   | 118 |   | 161 |   | 127 |   | 107 |

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- risks with respect to currency exchange rate fluctuations (as more fully discussed above);   
- local economic and political conditions;   
- disruptions of capital and trading markets;   
- possible terrorist attacks or acts of aggression that could affect vehicle production or the availability of raw materials or supplies;   
- restrictive governmental actions (such as restrictions on transfer of funds and trade protection measures, including export duties and quotas and customs duties and tariffs);   
- changes in legal or regulatory requirements;   
- import or export licensing requirements;   
- limitations on the repatriation of funds;   
- high inflationary conditions;   
- difficulty in obtaining distribution and support;   
- nationalization;   
- the laws and policies of the United States affecting trade, foreign investment and loans;   
- the ability to attract and retain qualified personnel;   
- tax laws; and   
- labor disruptions. 

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- cease the manufacture, use or sale of the infringing products or technology;  
- pay substantial damages for infringement;  
- expend significant resources to develop non-infringing products or technology;  
- license technology from the third-party claiming infringement, which license may not be available on commercially reasonable terms, or at all;  
- enter into cross-licenses with our competitors, which could weaken our overall intellectual property portfolio;  
- lose the opportunity to license our technology to others or to collect royalty payments based upon successful protection and assertion of our intellectual property against others;   
- pay substantial damages to our customers or end users to discontinue use or replace infringing technology with non-infringing technology; or   
- relinquish rights associated with one or more of our patent claims, if our claims are held invalid or otherwise unenforceable. 

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- any of our present or future patents will not lapse or be invalidated, circumvented, challenged, abandoned or, in the case of third-party patents licensed or sub-licensed to us, be licensed to others;   
- our intellectual property rights will provide competitive advantages to us;   
- rights previously granted by third parties to intellectual property rights licensed or assigned to us, will not hamper our ability to assert our intellectual property rights against potential competitors or hinder the settlement of currently pending or future disputes;  
- any of our pending or future patent applications will be issued or have the coverage originally sought;  
- our intellectual property rights will be enforced in jurisdictions where competition may be intense or where legal protection may be weak; or  
- any of the trademarks, trade secrets or other intellectual property rights that we presently employ in our business will not lapse or be invalidated, circumvented, challenged, abandoned or licensed to others. 

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|                      |                           |                     |                           |            |   | Engineering Facilities, Sales |
|---------------------------|--------------------------------|--------------------------|--------------------------------|-----------------|--------|-------------------------------|
|                      |                           |                     |                           |            |   | Offices, Warehouses and       |
|                      |       | Manufacturing Facilities |       | Service Centers |
| Commercial Truck          |                           |                     | 20                             |            |   |                          | 10 |   |
| Industrial                |                           |                     | 10                             |            |   |                          | 4 |   |
| Aftermarket & Trailer |                           |                     | 9                              |            |   |                          | 10 |   |
| LVS                       |                           |                     | 24                             |            |   |                          | 8 |   |
| Other                     |                           |                     | —                        |            |   |                          | 4 |   |
|                      |                           |                     | 63                             |            |   |                          | 36 |   |
|                      |                           |

|                                       |                     | Owned Facilities |                     | Leased Facilities |                     |           |
|--------------------------------------------|--------------------------|------------------|--------------------------|-------------------|--------------------------|----------------|
|                                       |                     |             |                     | Commercial        |                     | Aftermarket    |   |   |   |   |   |   |   | Commercial |   | Aftermarket |   |   |   |   |   |   |
| Location                                   |      | LVS              |      | Truck             |      | & Trailers |      | Industrial |      | Other |      | LVS |      | Truck |      | & Trailers |      | Industrial |      | Other |      | Total |
| United States                              |                     | 266,050          |                     | 1,237,763         |                     | 432,037        |   | 1,013,528 |   | 429,000 |   | 221,500 |   | 480,225 |   | 470,327 |   | — |   | — |   | 4,550,430 |
| Canada                                     |                     | —          |                     | 196,000           |                     | —        |   | — |   | — |   | — |   | — |   | 236,068 |   | — |   | — |   | 432,068 |
| Europe                                     |                     | 611,732          |                     | 2,185,581         |                     | 700,000        |   | — |   | — |   | 964,304 |   | 112,101 |   | 72,408 |   | — |   | 30,165 |   | 4,676,291 |
| Asia/Pacific                               |                     | 64,584           |                     | —           |                     | —        |   | 672,359 |   | — |   | 250,741 |   | — |   | 57,705 |   | 857,151 |   | — |   | 1,902,540 |
| Latin America                              |                     | —          |                     | 2,105,400         |                     | 38,913         |   | — |   | — |   | 124,338 |   | 440,000 |   | — |   | — |   | — |   | 2,708,651 |
|        Total |                     | 942,366          |                     | 5,724,744         |                     | 1,170,950      |   | 1,685,887 |   | 429,000 |   | 1,560,883 |   | 1,032,326 |   | 836,508 |   | 857,151 |   | 30,165 |   | 14,269,980 |
|                                       |

|      | 1.     |      | See Note 20 of the Notes to Consolidated Financial Statements under Item 8. Financial Statements and Supplementary Data for information with respect to three class action lawsuits filed against the company as a result of modifications made to its retiree medical benefits.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|--------------------------|--------|--------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                     |   |
|                     | 2.     |                     | See Note 23 of the Notes to Consolidated Financial Statements under Item 8. Financial Statements and Supplementary Data for information with respect to litigation related to alleged asbestos-related liabilities.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                     |   |
|                     | 3.     |                     | See Item 1. Business, “Environmental Matters” for information relating to environmental proceedings.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                     |   |
|                     | 4.     |                     | On October 5, 2006, ZF Meritor LLC, a joint venture between an ArvinMeritor subsidiary and ZF Friedrichshafen AG, filed a lawsuit against Eaton Corporation in the United States District Court for the District of Delaware, alleging that Eaton had engaged in exclusionary, anticompetitive conduct in the markets for heavy-duty truck transmissions, in violation of the U.S. antitrust laws. The plaintiffs seek an injunction prohibiting Eaton from engaging in such anticompetitive conduct and monetary damages. On October 8, 2009, the jury found that Eaton engaged in exclusionary and anticompetitive conduct in the sale and marketing of heavy-duty truck transmissions. This ruling completed the initial phase of the trial in which the jury was asked to determine whether or not Eaton was liable for the alleged violations. Given the jury’s finding that Eaton did engage in anticompetitive conduct, the parties are expected to now proceed to the damages phase of the legal process through a separate trial. On December 10, 2009, Eaton filed a request for oral argument on its motion for judgment as a matter of law or new trial. |

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|      | 5.     |      | On March 31, 2008, S&E Quick Lube, a filter distributor, filed suit in U.S. District Court for the District of Connecticut alleging that twelve filter manufacturers, including a prior subsidiary of the company, engaged in a conspiracy to fix prices, rig bids and allocate U.S. customers for aftermarket automotive filters. This suit is a purported class action on behalf of direct purchasers of filters from the defendants. Several parallel purported class actions, including on behalf of indirect purchasers of filters, have been filed by other plaintiffs in a variety of jurisdictions in the United States and Canada. The cases have been consolidated into a multi-district litigation proceeding in Federal court for the Northern District of Illinois. On April 16, 2009, the Attorney General of the State of Florida filed a complaint with the U.S. District Court for the Northern District of Illinois based on these same allegations. On May 25, 2010, the Office of the Attorney General for the State of Washington informed the company that it also was investigating the allegations raised in these suits. On August 9, 2010, the County of Suffolk, New York, filed a complaint in the Eastern District of New York based on the same allegations. The case has been transferred to the multi-district litigation proceeding in Illinois. The company intends to vigorously defend the claims raised in all of these actions. The company is unable to estimate a range of exposure, if any, at this time. |
|--------------------------|--------|--------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                     |   |
|                     | 6.     |                     | Various other lawsuits, claims and proceedings have been or may be instituted or asserted against ArvinMeritor or our subsidiaries relating to the conduct of our business, including those pertaining to product liability, warranty or recall claims, intellectual property, safety and health, contract and employment matters. Although the outcome of litigation cannot be predicted with certainty and some lawsuits, claims or proceedings may be disposed of unfavorably to ArvinMeritor, management believes, after consulting with Vernon G. Baker, II, Esq., ArvinMeritor's General Counsel, that the disposition of matters that are pending will not have a material adverse effect on our business, financial condition or results of operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |

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|          |                     | Fiscal Year 2010 |                           | Fiscal Year 2009 |
|---------------|--------------------------|------------------|--------------------------------|------------------|
| Quarter Ended |      | High             |            | Low              |      | High |      | Low |
| December 31   |                     | $                |      12.00 |             | $ | 6.80 |   | $ |      13.70 |   | $ |      2.21 |
| March 31      |                     |             | 14.29                          |             |   | 8.90 |   |   | 3.99 |   |   | 0.32 |
| June 30       |                     |             | 17.22                          |             |   |      12.21 |   |   | 4.42 |   |   | 0.65 |
| September 30  |                     |             | 17.00                          |             |   | 11.95 |   |   | 9.29 |   |   | 3.14 |

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|                |
|--------------------------|
|      | *$100 invested on 9/30/05 in stock or index, including reinvestment of dividends. Fiscal year ending September 30. Copyright© 2010 S&P, a division of The McGraw-Hill Companies Inc. All rights reserved. |

|               |      | 9/05   |      | 9/06   |      | 9/07   |      | 9/08   |      | 9/09   |      | 9/10   |
|--------------------|--------------------------|--------|--------------------------|--------|--------------------------|--------|--------------------------|--------|--------------------------|--------|--------------------------|--------|
| ArvinMeritor, Inc. |                     | 100.00 |                     | 87.44  |                     | 105.53 |                     | 84.33  |                     | 52.47  |                     | 104.27 |
| S&P 500 (1)    |                     | 100.00 |                     | 110.79 |                     | 129.01 |                     | 100.66 |                     | 93.70  |                     | 103.22 |
| Peer Group (2)     |                     | 100.00 |                     | 114.75 |                     | 189.19 |                     | 131.26 |                     | 125.85 |                     | 195.58 |

| (1)    |                     | Standard & Poor’s 500 Market Index.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|--------|--------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (2)    |      | We believe that a peer group of representative independent automotive suppliers of approximately comparable size and products to ArvinMeritor is appropriate for comparing shareowner return. The peer group consists of BorgWarner, Inc., Cummins Inc., Dana Holding Corp., Eaton Corporation, Johnson Controls, Inc., Lear Corporation, Superior Industries International, Inc., Tenneco, Inc. and Visteon Corporation. This peer group is the same as the group utilized in the performance chart in the Annual Report on Form 10-K for the fiscal year ended September 30, 2009 except that Delphi Corporation, which ceased trading in November 2009, was dropped from the peer group this year. |

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|                                                                            |                     | Year Ended September 30, |
|---------------------------------------------------------------------------------|--------------------------|--------------------------|
|                                                                            |      | 2010                     |      | 2009 |      | 2008 |   |      | 2007 |      | 2006 |
| SUMMARY OF OPERATIONS                                                           |                     |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        Commercial Truck                           |                     | $                        |      1,960 |   |   | $ | 1,566 |   |   | $ |      2,922 |   |   | $ |      2,621 |   |   | $ |      2,764 |   |
|        Industrial                                 |                     |                     | 951 |   |   |   | 888 |   |   |   | 1,117 |   |   |   | 854 |   |   |   | 697 |   |
|        Aftermarket & Trailer                  |                     |                     | 969 |   |   |   | 954 |   |   |   | 1,183 |   |   |   | 1,090 |   |   |   | 1,092 |   |
|        Intersegment Sales                         |                     |                     | (290 | ) |   |   | (333 | ) |   |   | (403 | ) |   |   | (360 | ) |   |   | (374 | ) |
| Total Continuing Operations                                                     |                     | $                        | 3,590 |   |   | $ | 3,075 |   |   | $ | 4,819 |   |   | $ | 4,205 |   |   | $ | 4,179 |   |
|                                                                            |                     |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating Income                                                                |                     | $                        | 116 |   |   | $ | 10 |   |   | $ | 164 |   |   | $ | 32 |   |   | $ | 128 |   |
| Income (Loss) Before Income Taxes                                               |                     |                     | 60 |   |   |   | (68 | ) |   |   | 115 |   |   |   | (47 | ) |   |   | 30 |   |
| Net Income Attributable to Noncontrolling Interests                             |                     |                     | (14 | ) |   |   | (12 | ) |   |   | (15 | ) |   |   | (15 | ) |   |   | (14 | ) |
| Net Income (Loss) Attributable to ArvinMeritor, Inc.:                           |                     |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        Income (Loss) from Continuing Operations   |                     | $                        | (2 | ) |   | $ | (747 | ) |   | $ | (57 | ) |   | $ | (70 | ) |   | $ | 68 |   |
|        Income (Loss) from Discontinued Operations |                     |                     | 14 |   |   |   | (441 | ) |   |   | (48 | ) |   |   | (152 | ) |   |   | (244 | ) |
|        Net Income (Loss)                          |                     | $                        | 12 |   |   | $ |      (1,188 | ) |   | $ | (105 | ) |   | $ | (222 | ) |   | $ | (176 | ) |
|                                                                            |                     |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| BASIC EARNINGS (LOSS) PER SHARE                                                 |                     |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        Continuing Operations                      |                     | $                        | (0.02 | ) |   | $ | (10.31 | ) |   | $ | (0.79 | ) |   | $ | (0.99 | ) |   | $ | 0.98 |   |
|        Discontinued Operations                    |                     |                     | 0.16 |   |   |   | (6.08 | ) |   |   | (0.67 | ) |   |   | (2.16 | ) |   |   | (3.52 | ) |
|        Basic Earnings (Loss) per Share            |                     | $                        | 0.14 |   |   | $ | (16.39 | ) |   | $ | (1.46 | ) |   | $ | (3.15 | ) |   | $ | (2.54 | ) |
|                                                                            |                     |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| DILUTED EARNINGS (LOSS) PER SHARE                                               |                     |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        Continuing Operations                      |                     | $                        | (0.02 | ) |   | $ | (10.31 | ) |   | $ | (0.79 | ) |   | $ | (0.99 | ) |   | $ | 0.98 |   |
|        Discontinued Operations                    |                     |                     | 0.16 |   |   |   | (6.08 | ) |   |   | (0.67 | ) |   |   | (2.16 | ) |   |   | (3.48 | ) |
|        Diluted Earnings (Loss) per Share          |                     | $                        | 0.14 |   |   | $ | (16.39 | ) |   | $ | (1.46 | ) |   | $ | (3.15 | ) |   | $ | (2.50 | ) |
|                                                                            |                     |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash Dividends per Share                                                        |                     | $                        | — |   |   | $ | 0.10 |   |   | $ | 0.40 |   |   | $ | 0.40 |   |   | $ | 0.40 |   |
|                                                                            |                     |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| FINANCIAL POSITION AT SEPTEMBER 30                                              |                     |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Assets                                                                    |                     | $                        | 2,879 |   |   | $ | 2,505 |   |   | $ | 4,639 |   |   | $ | 4,751 |   |   | $ | 5,489 |   |
| Short-term Debt                                                                 |                     |                     | — |   |   |   | 97 |   |   |   | 240 |   |   |   | 18 |   |   |   | 56 |   |
| Long-term Debt                                                                  |                     |                     | 1,029 |   |   |   | 995 |   |   |   | 970 |   |   |   | 1,030 |   |   |   | 1,126 |   |

|                                                                                          |                     | Year Ended September 30, |
|-----------------------------------------------------------------------------------------------|--------------------------|--------------------------|
|                                                                                          |      | 2010                     |      | 2009 |      | 2008 |      | 2007 |      | 2006 |
| Pretax items:                                                                                 |                     |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        Restructuring costs                                      |                     | $                        | (6 | ) |   | $ | (61 | ) |   | $ | — |   |   | $ |      (16 | ) |   | $ |      (6 | ) |
|        Asset impairment charges                                 |                     |                     |      (2 | ) |   |   | (14 | ) |   |   | — |   |   |   | — |   |   |   | — |   |
|        Gain on divestitures of businesses                       |                     |                     | — |   |   |   | — |   |   |   | — |   |   |   | 3 |   |   |   | 23 |   |
|        Environmental remediation charges                        |                     |                     | (6 | ) |   |   | (1 | ) |   |   | (3 | ) |   |   | (2 | ) |   |   | (8 | ) |
|        Impact of pension plan freeze                            |                     |                     | 7 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| After tax items:                                                                              |                     |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        Non-cash charge on repatriated earnings                  |                     |                     | — |   |   |   | — |   |   |   | (68 | ) |   |   | — |   |   |   | — |   |
|        Deferred tax asset valuation allowance benefit (expense) |                     |                     | 9 |   |   |   |      (644 | ) |   |   |      (46 | ) |   |   | — |   |   |   | — |   |

----

|                                                                                               |                     | Year Ended September 30, |
|----------------------------------------------------------------------------------------------------|--------------------------|--------------------------|
|                                                                                               |      | 2010                     |      | 2009 |      | 2008 |      | 2007 |      | 2006 |
| Pretax items:                                                                                      |                     |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        Gain (loss) on divestitures of businesses, net                |                     | $                        | 5 |   |   | $ | (10 | ) |   | $ |      (16 | ) |   | $ |      (200 | ) |   | $ | 28 |   |
|        Restructuring costs                                           |                     |                     | (6 | ) |   |   | (40 | ) |   |   | (20 | ) |   |   | (49 | ) |   |   | (27 | ) |
|        Long-lived assets and goodwill impairment                     |                     |                     |      — |   |   |   |      (265 | ) |   |   | — |   |   |   | 12 |   |   |   |      (332 | ) |
|               (charges) reversals |                     |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        Charge for indemnity obligation                               |                     |                     | — |   |   |   | (28 | ) |   |   | — |   |   |   | — |   |   |   | — |   |
| After tax items:                                                                                   |                     |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        Non-cash charge on repatriated earnings                       |                     |                     | — |   |   |   | — |   |   |   | (69 | ) |   |   | — |   |   |   | — |   |

----

----

|                                                                               |                           | Year Ended September 30,     |
|------------------------------------------------------------------------------------|--------------------------------|------------------------------|
|                                                                               |       | 2010                         |       | 2009 |       | 2008 |       | 2007 |       | 2006 |
| Estimated Commercial Vehicle production (in thousands):                            |                           |                         |   |   |   |   |   |   |   |   |
|        North America, Heavy-Duty Trucks              |                           |      145 |   |      129 |   |      194 |   |      246 |   |      352 |
|        North America, Medium-Duty Trucks             |                           | 74                           |   | 75 |   | 122 |   | 176 |   | 216 |
|        United States and Canada, Trailers            |                           | 116                          |   | 95 |   | 176 |   | 275 |   | 312 |
|        Western Europe, Heavy- and Medium-Duty Trucks |                           | 265                          |   | 252 |   | 562 |   | 480 |   | 439 |
|        South America, Heavy- and Medium- Duty Trucks |                           | 172                          |   | 118 |   | 161 |   | 127 |   | 107 |

- Weakened financial condition of original equipment manufacturers and suppliers;  
- Disruptions in the financial markets and its impact on the availability and cost of credit;  
- Excess capacity;  
- Consolidation and globalization of OEMs and their suppliers;  
- Higher energy and transportation costs;  
- Pension and retiree medical health care costs; and  
- Currency exchange rate volatility. 

- Timing and extent of recovery of the production and sales volumes in commercial vehicles markets  around the world;  
- A significant further deterioration or slowdown in economic activity in the key markets we operate;  
- The financial strength of our suppliers and customers, including potential bankruptcies;  
- Higher than planned price reductions to our customers;  
- Volatility in price and availability of steel and other commodities;  
- Any unplanned extended shutdowns or production interruptions by us, our customers or our suppliers; 

----

- Our ability to successfully complete the sale of our Body Systems business;  
- Additional restructuring actions and the timing and recognition of restructuring charges;  
- Higher than planned warranty expenses, including the outcome of known or potential recall campaigns;  
- Our ability to implement planned productivity and cost reduction initiatives;  
- Significant contract awards or losses of existing contracts; and 

- Temporary or permanent workforce reductions of approximately 3,000 employees, including full-time,  contract and temporary workers;  
- Plant level furlough programs, including government supported programs;  
- Extended shutdowns at all plants;  
- Temporary pay reductions for salaried employees in fiscal year 2009, which were achieved through  temporary base salary adjustments and/or curtailed production schedules. These pay reductions have been  reversed in fiscal year 2010;  
- Temporary suspension of the matching contribution for the U.S. 401(k) plan, which has been reversed in  fiscal year 2010;  
- Temporary suspension of fiscal year 2009 merit increases for all employees; and  
- Temporary reduction of Board of Directors annual compensation by 10 percent. 

----

|                                                                                                           |                           | Year Ended September 30,  |
|----------------------------------------------------------------------------------------------------------------|--------------------------------|---------------------------|
|                                                                                                           |       | 2010                      |       | 2009 |       | 2008 |
| Adjusted income from continuing operations                                                                     |                           | $                         | 4 |   |   | $ | (30 | ) |   | $ | 57 |   |
|        Restructuring costs                                                       |                           |                      | (6 | ) |   |   | (61 | ) |   |   | — |   |
|        Asset impairment charges                                                  |                           |                      | (2 | ) |   |   | (14 | ) |   |   | — |   |
|        Loss on debt extinguishment                                               |                           |                      | (13 | ) |   |   | — |   |   |   | — |   |
|        Gain on settlement of note receivable                                     |                           |                      | 6 |   |   |   | — |   |   |   | — |   |
|        Income tax benefit (expense)                                              |                           |                      | 9 |   |   |   | (642 | ) |   |   | (114 | ) |
|               Loss from continuing operations |                           | $                         | (2 | ) |   | $ | (747 | ) |   | $ | (57 | ) |
|                                                                                                           |                           |                      |   |   |   |   |   |   |   |   |   |   |
| Adjusted diluted earnings (loss) per share                                                                     |                           |                      |   |   |   |   |   |   |   |   |   |   |
|        from continuing operations                                                |                           | $                         | 0.05 |   |   | $ | (0.42 | ) |   | $ | 0.79 |   |
|        Impact of adjustments on diluted earnings                                 |                           |                      |   |   |   |   |   |   |   |   |   |   |
|               (loss) per share                |                           |                      | (0.07 | ) |   |   | (9.89 | ) |   |   | (1.58 | ) |
| Diluted loss per share from continuing                                                                         |                           |                      |   |   |   |   |   |   |   |   |   |   |
| operations                                                                                                     |                           | $     | (0.02 | ) |   | $     | (10.31 | ) |   | $     | (0.79 | ) |
|                                                                                                           |                           |                      |   |   |   |   |   |   |   |   |   |   |

----

|                                                                                                                            |                           | Year Ended September 30,  |
|---------------------------------------------------------------------------------------------------------------------------------|--------------------------------|---------------------------|
|                                                                                                                            |       | 2010                      |       | 2009 |       | 2008 |
| Free cash flow before restructuring payments and changes in off-balance                                                         |                           |                      |   |   |   |   |   |   |   |   |   |   |
|        sheet accounts receivable factoring and securitization                                     |                           | $                         | 70 |   |   | $ | (89 | ) |   | $ | (85 | ) |
|        Restructuring payments – continuing operations                                       |                           |                      | (14 | ) |   |   | (28 | ) |   |   | (4 | ) |
|        Restructuring payments – discontinued operations                                     |                           |                      | (8 | ) |   |   | (37 | ) |   |   | (40 | ) |
|        Changes in off-balance sheet accounts receivable factoring                                 |                           |                      |   |   |   |   |   |   |   |   |   |   |
|               and securitization – continuing operations |                           |                      | 60 |   |   |   | (257 | ) |   |   | 135 |   |
|        Changes in off-balance sheet accounts receivable factoring and                             |                           |                      |   |   |   |   |   |   |   |   |   |   |
|               securitization – discontinued operations   |                           |                      | 14 |   |   |   | (18 | ) |   |   | (15 | ) |
| Free cash flow                                                                                                                  |                           |                      | 122 |   |   |   | (429 | ) |   |   | (9 | ) |
|        Capital expenditures – continuing operations                                         |                           |                      | 56 |   |   |   | 82 |   |   |   | 98 |   |
|        Capital expenditures – discontinued operations                                       |                           |                      | 33 |   |   |   | 52 |   |   |   | 74 |   |
| Cash flows provided by (used for) operating                                                                                     |                           |                      |   |   |   |   |   |   |   |   |   |   |
|        activities                                                                                 |                           | $     | 211 |   |   | $     | (295 | ) |   | $     | 163 |   |
|                                                                                                                            |                           |                      |   |   |   |   |   |   |   |   |   |   |

----

|                                                                                   |                           | Year Ended September 30,                |
|----------------------------------------------------------------------------------------|--------------------------------|-----------------------------------------|
|                                                                                   |       | 2010                                    |       | 2009 |       | 2008 |
|                                                                                   |                           | (in millions, except per share amounts) |
| Sales:                                                                                 |                           |                                    |   |   |   |   |   |   |   |   |   |   |
|        Commercial Truck                                  |                           | $                   | 1,960 |   |   | $     | 1,566 |   |   | $     | 2,922 |   |
|        Industrial                                        |                           |                                    | 951 |   |   |   | 888 |   |   |   | 1,117 |   |
|        Aftermarket & Trailer                         |                           |                                    | 969 |   |   |   | 954 |   |   |   | 1,183 |   |
|        Intersegment Sales                                |                           |                                    | (290 | ) |   |   | (333 | ) |   |   | (403 | ) |
| SALES                                                                                  |                           | $                                       | 3,590 |   |   | $ | 3,075 |   |   | $ | 4,819 |   |
| SEGMENT EBITDA:                                                                        |                           |                                    |   |   |   |   |   |   |   |   |   |   |
|        Commercial Truck                                  |                           | $                                       | 85 |   |   | $ | (38 | ) |   | $ | 115 |   |
|        Industrial                                        |                           |                                    | 94 |   |   |   | 135 |   |   |   | 140 |   |
|        Aftermarket & Trailer                         |                           |                                    | 71 |   |   |   | 89 |   |   |   | 110 |   |
| SEGMENT EBITDA                                                                         |                           |                                    | 250 |   |   |   | 186 |   |   |   | 365 |   |
|        Unallocated legacy and corporate expense, net (1) |                           |                                    | (2 | ) |   |   | (11 | ) |   |   | (67 | ) |
| ADJUSTED EBITDA                                                                        |                           |                                    | 248 |   |   |   | 175 |   |   |   | 298 |   |
|        Loss on sale of receivables                       |                           |                                    | (4 | ) |   |   | (5 | ) |   |   | (21 | ) |
|        Depreciation and amortization                     |                           |                                    | (70 | ) |   |   | (70 | ) |   |   | (76 | ) |
|        Asset impairment charges                          |                           |                                    | (2 | ) |   |   | (14 | ) |   |   | — |   |
|        Interest expense, net                             |                           |                                    | (106 | ) |   |   | (93 | ) |   |   | (86 | ) |
|        Restructuring costs                               |                           |                                    | (6 | ) |   |   | (61 | ) |   |   | — |   |
|        Noncontrolling interests                          |                           |                                    | (14 | ) |   |   | (9 | ) |   |   | (11 | ) |
|        Provision for income taxes                        |                           |                                    | (48 | ) |   |   | (670 | ) |   |   | (161 | ) |
| LOSS FROM CONTINUING OPERATIONS, attributable to ArvinMeritor, Inc.                    |                           |                                    | (2 | ) |   |   | (747 | ) |   |   | (57 | ) |
| INCOME (LOSS) FROM DISCONTINUED OPERATIONS, net of tax,                                |                           |                                    |   |   |   |   |   |   |   |   |   |   |
|        attributable to ArvinMeritor, Inc.                |                           |                                    | 14 |   |   |   | (441 | ) |   |   | (48 | ) |
| NET INCOME (LOSS), attributable to ArvinMeritor, Inc.                                  |                           | $                                       | 12 |   |   | $ | (1,188 | ) |   | $ | (105 | ) |
|                                                                                   |                           |                                    |   |   |   |   |   |   |   |   |   |   |
| DILUTED EARNINGS (LOSS) PER SHARE, attributable to ArvinMeritor, Inc.                  |                           |                                    |   |   |   |   |   |   |   |   |   |   |
|        Continuing operations                             |                           | $                                       | (0.02 | ) |   | $ | (10.31 | ) |   | $ | (0.79 | ) |
|        Discontinued operations                           |                           |                                    | 0.16 |   |   |   | (6.08 | ) |   |   | (0.67 | ) |
| Diluted earnings (loss) per share                                                      |                           | $                                       | 0.14 |   |   | $ | (16.39 | ) |   | $ | (1.46 | ) |
|                                                                                   |                           |                                    |   |   |   |   |   |   |   |   |   |   |
| DILUTED AVERAGE COMMON SHARES OUTSTANDING                                              |                           |                                    | 84.7 |   |   |   | 72.5 |   |   |   | 72.1 |   |

| (1) |       | Unallocated legacy and corporate expense, net represents items that are not directly related to our business segments. These costs primarily include pension and retiree medical costs associated with recently sold businesses and other legacy costs for environmental and product liability. In fiscal year 2010 we recognized approximately $7 million of income as a result of the pension curtailment triggered by the freeze of our U.K. pension plan, of which $6 million is included in unallocated legacy and corporate expense, net. Fiscal years 2009 and 2008 include corporate costs previously allocated to businesses sold or held for sale of $3 million and $46 million, respectively. |
|-----|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                           |                           |                      |                           |   |                           |                      |                           |   |                           |                      |                           |   |   |   |   | Dollar Change Due To       |
|----------------------------------------------------------------|--------------------------------|---------------------------|--------------------------------|--------|--------------------------------|---------------------------|--------------------------------|--------|--------------------------------|---------------------------|--------------------------------|--------|--------|--------|--------|----------------------------|
|                                                           |                           |                      |                           |   |                           |                      |                           |   |                           | Dollar                    |                           | %      |   |   |   |                       |   | Volume / |
|                                                           |       | 2010                      |       | 2009   |       | Change                    |       | Change |       | Currency                  |       | Other  |
| Sales:                                                         |                           |                      |                           |   |                           |                      |                           |   |                           |                      |                           |   |   |   |   |                       |   |   |   |   |   |   |
|        Commercial Truck          |                           | $     | 1,960                          |   |                           | $     | 1,566                          |   |                           | $     | 394                            |   | 25     | %      |   | $      | 69 |   |   | $      | 325 |   |
|        Industrial                |                           |                      | 951                            |   |                           |                      | 888                            |   |                           |                      | 63                             |   | 7      | %      |   |                       | 24 |   |   |   | 39 |   |
|        Aftermarket & Trailer |                           |                      | 969                            |   |                           |                      | 954                            |   |                           |                      | 15                             |   | 2      | %      |   |                       | 19 |   |   |   | (4 | ) |
|        Intersegment Sales        |                           |                      | (290                           | )      |                           |                      | (333                           | )      |                           |                      | 43                             |   | 13     | %      |   |                       | (8 | ) |   |   | 51 |   |
| TOTAL SALES                                                    |                           | $                         | 3,590                          |   |                           | $                         | 3,075                          |   |                           | $                         | 515                            |   | 17     | %      |   | $                          | 104 |   |   | $ | 411 |   |
|                                                           |                           |                      |                           |   |                           |                      |                           |   |                           |                      |                           |   |   |   |   |                       |   |   |   |   |   |   |

----

|                                                                             |       | Cost of Sales                               |
|----------------------------------------------------------------------------------|--------------------------------|---------------------------------------------|
| Fiscal year ended September 30, 2009                                             |                           | $        | 2,780 |   |
|        Volumes and mix                             |                           |                                        | 375 |   |
|        Foreign exchange                            |                           |                                        | 70 |   |
|        Research, development and engineering costs |                           |                                        | 14 |   |
|        Other cost improvements, net                |                           |                                        | (68 | ) |
| Fiscal year ended September 30, 2010                                             |                           | $                                           | 3,171 |   |
|                                                                             |                           |                                        |   |   |

| Higher material costs                                                 |       | $          | 316    |   |
|-----------------------------------------------------------------------|--------------------------------|----------------------------------------------------|--------|--------|
| Higher labor and overhead costs                                       |                           |                                               | 102    |   |
| Other                                                                 |                           |                                               | (27    | )      |
|        Total increase in costs of sales |                           | $                                                  | 391    |   |
|                                                                  |                           |                                               |   |   |

|                                                                            |                           | 2010                      |                           | 2009   |                           | Increase (Decrease)           |
|---------------------------------------------------------------------------------|--------------------------------|---------------------------|--------------------------------|--------|--------------------------------|-------------------------------|
|                                                                            |                           |                      |                           |   |                           | % of                          |   |   |   |   |   | % of |   |   |   |   |   |   |
|                                                                            |       | Amount                    |       | sales  |       | Amount                        |       | sales |       |   |   |   |       |   |
| SG&A                                                                        |                           |                      |                           |   |                           |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        Loss on sale of receivables                |                           | $                         | (4                             | )      |                           | (0.1                          | )% |   | $ | (5 | ) |   | (0.2 | )% |   | $ | (1 | ) |   | (0.1)pts |
|        Short- and long-term variable compensation |                           |                      | (57                            | )      |                           | (1.6                          | )% |   |   | 7 |   |   | 0.2 | % |   |   | 64 |   |   | 1.8pts |
|        All other SG&A                         |                           |                      | (228                           | )      |                           | (6.3                          | )% |   |   | (211 | ) |   |      (6.8 | )% |   |   | 17 |   |   |      (0.5)pts |
| Total SG&A                                                                  |                           | $     | (289                           | )      |                           |      (8.0 | )% |   | $     | (209 | ) |   | (6.8 | )% |   | $     | 80 |   |   | 1.2pts |
|                                                                            |                           |                      |                           |   |                           |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                               |                           |                      |                           |       |                           |          |                           |                      |                           |   |                           |    |                           | Aftermarket               |                           |   |                      |    |   |                      |
|--------------------------------------------------------------------|--------------------------------|---------------------------|--------------------------------|------------|--------------------------------|---------------|--------------------------------|---------------------------|--------------------------------|--------|--------------------------------|---------|--------------------------------|---------------------------|--------------------------------|--------|---------------------------|---------|--------|---------------------------|
|                                                               |                           | Commercial Truck          |                           | Industrial |                           | & Trailer |                           | Total                     |
|                                                               |       | 2010                      |       | 2009       |       | 2010          |       | 2009                      |       | 2010   |       | 2009    |       | 2010                      |       | 2009   |
| Performance Plus actions                                           |                           | $     | 5                              |       | $          | 32            |                           | $     | 1                              |   | $          | — |                           | $     | —                        |   | $     | — |   | $     | 6 |   | $ | 32 |
| Fiscal year 2009 actions (reduction in workforce)                  |                           |                      | —                        |       |                           | 20            |                           |                      | —                        |   |                           | 2       |                           |                      | —                        |   |                      | 1       |   |                      | — |   |   | 23 |
|        Total restructuring costs (1) |                           | $                         | 5                              |       | $                              | 52            |                           | $                         | 1                              |   | $                              | 2       |                           | $                         | —                        |   | $                         | 1       |   | $                         | 6 |   | $     | 55 |
|                                                               |                           |                      |                           |       |                           |          |                           |                      |                           |   |                           |    |                           |                      |                           |   |                      |    |   |                      |   |   |   |   |

| (1) |       | Total segment restructuring costs do not include those recorded in unallocated corporate costs. These costs were $6 million in fiscal year 2009 primarily related to employee termination benefits. There were no corporate restructuring costs in fiscal year 2010. |
|-----|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                   |                           | Year Ended                |
|------------------------------------------------------------------------|--------------------------------|---------------------------|
|                                                                   |                           | September 30,             |
|                                                                   |       | 2010                      |       | 2009 |
| Gain (loss) on sale of businesses, net                                 |                           | $                         | 5 |   |   | $ | (10 | ) |
| Long-lived asset impairment charges                                    |                           |                      | — |   |   |   | (265 | ) |
| Charge for indemnity obligation                                        |                           |                      | — |   |   |   | (28 | ) |
| Restructuring costs                                                    |                           |                      | (6 | ) |   |   | (40 | ) |
| LVS divestiture costs                                                  |                           |                      | (9 | ) |   |   | (9 | ) |
| Other                                                                  |                           |                      | (15 | ) |   |   | — |   |
| Operating income (loss), net                                           |                           |                      | 41 |   |   |   | (65 | ) |
|        Income (loss) before income taxes |                           |                      | 16 |   |   |   | (417 | ) |
| Provision for income taxes                                             |                           |                      | (2 | ) |   |   | (21 | ) |
|        Net income (loss)                 |                           |                      | 14 |   |   |   | (438 | ) |
| Net income (loss) attributable to noncontrolling interests             |                           |                      | — |   |   |   | (3 | ) |
| Income (loss) from discontinued operations attributable                |                           |                      |   |   |   |   |   |   |
|        to ArvinMeritor, Inc.             |                           | $     | 14 |   |   | $ |      (441 | ) |
|                                                              |                           |                      |   |   |   |   |   |   |

----

|                                                |                           | Segment EBITDA            |                           | Segment EBITDA Margins |
|-----------------------------------------------------|--------------------------------|---------------------------|--------------------------------|------------------------|
|                                                |                           |                      |                           |                   |   |   |   |   |   |   |   |   | % |   |   |   |   |   |   |   |   |
|                                                |       | 2010                      |       | 2009                   |       | $ Change |       | Change |       | 2010 |       | 2009 |       | Change |
| Commercial Truck                                    |                           | $                         | 85                             |                   | $ | (38 | ) |   | $      | 123 |   |   | 324 | % |   |      4.3 | % |   | (2.4 | )% |   | 6.7pts |
| Industrial                                          |                           |                      | 94                             |                   |   | 135 |   |   |   | (41 | ) |   | (30 | )% |   | 9.9 | % |   |      15.2 | % |   | (5.3)pts |
| Aftermarket & Trailer                           |                           |                      | 71                             |                   |   | 89 |   |   |   | (18 | ) |   |      (20 | )% |   | 7.3 | % |   | 9.3 | % |   |      (2.0)pts |
|        Segment EBITDA |                           | $     | 250                            |                   | $     | 186 |   |   | $ | 64 |   |   | 34 | % |   | 7.0 | % |   | 6.0 | % |   | 1.0pts |
|                                                |                           |                      |                           |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                                                                                                                      |                           | Commercial                                        |                           |       |                           |                            |                           | Aftermarket |   |                                              |    |   |
|-------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|---------------------------------------------------|--------------------------------|------------|--------------------------------|---------------------------------|--------------------------------|-------------|--------|---------------------------------------------------|---------|--------|
|                                                                                                                                      |       | Truck                                             |       | Industrial |       | & Trailer                   |       | TOTAL       |
| Segment EBITDA–Year ended September 30, 2009                                                                                        |                           | $         | (38                            | )          |                           | $      | 135                            |        |   | $         | 89      |   |   | $      | 186 |   |
|        Higher earnings from unconsolidated affiliates                                                       |                           |                                              | 25                             |       |                           |                            | 2                              |        |   |                                              | 6       |   |   |   | 33 |   |
|        Elimination of temporary cost reductions                                                             |                           |                                              | (46                            | )          |                           |                            | (13                            | )           |   |                                              | (27     | )      |   |   | (86 | ) |
|        Lower (higher) warranty costs                                                                        |                           |                                              | 12                             |       |                           |                            | 4                              |        |   |                                              | (3      | )      |   |   | 13 |   |
|        Environmental remediation charges                                                                    |                           |                                              | (3                             | )          |                           |                            | —                        |        |   |                                              | — |   |   |   | (3 | ) |
|        Higher pension and retiree medical costs                                                             |                           |                                              | (8                             | )          |                           |                            | (4                             | )           |   |                                              | (5      | )      |   |   | (17 | ) |
|               Volume, performance, mix and other, net of cost reductions |                           |                                              | 143                            |       |                           |                            | (30                            | )           |   |                                              | 11      |   |   |   | 124 |   |
| Segment EBITDA – Year ended September 30, 2010                                                                                      |                           | $                                                 | 85                             |       |                           | $                               | 94                             |        |   | $                                                 | 71      |   |   | $ | 250 |   |
|                                                                                                                                 |                           |                                              |                           |       |                           |                            |                           |        |   |                                              |    |   |   |   |   |   |

----

|                                                           |                     |   |                           |   |                     |   |                           |   |                     |     |                            |    |   |                         |   |   | Dollar Change Due To |
|----------------------------------------------------------------|--------------------------|--------|--------------------------------|--------|--------------------------|--------|--------------------------------|--------|--------------------------|----------|---------------------------------|---------|--------|------------------------------|--------|--------|----------------------|
|                                                           |                     |   |                           |   |                     |   |                           |   |                     | Dollar   |                            | %       |   |                         |   |   |                 | Volume |
|                                                           |      | 2009   |            | 2008   |      | Change |            | Change |      | Currency |             | / Other |
| Sales:                                                         |                     |   |                           |   |                     |   |                           |   |                     |     |                            |    |   |                         |   |   |                 |   |   |   |   |
|        Commercial Truck          |                     | $      | 1,566                          |   |                     | $      | 2,922                          |   |                     | $        | (1,356                          | )       |   | (46                          | )%     |   | $                    | (204 | ) |   | $ | (1,152 | ) |
|        Industrial                |                     |   | 888                            |   |                     |   | 1,117                          |   |                     |     | (229                            | )       |   | (21                          | )%     |   |                 | (16 | ) |   |   | (213 | ) |
|        Aftermarket & Trailer |                     |   | 954                            |   |                     |   | 1,183                          |   |                     |     | (229                            | )       |   | (19                          | )%     |   |                 | (57 | ) |   |   | (172 | ) |
|        Intersegment Sales        |                     |   | (333                           | )      |                     |   | (403                           | )      |                     |     | 70                              |    |   | 17                           | %      |   |                 | 54 |   |   |   | 16 |   |
| TOTAL SALES                                                    |                     | $      |      3,075 |   |                     | $      |      4,819 |   |                     | $        |      (1,744 | )       |   |      (36 | )%     |   | $                    |      (223 | ) |   | $ |      (1,521 | ) |
|                                                           |                     |   |                           |   |                     |   |                           |   |                     |     |                            |    |   |                         |   |   |                 |   |   |   |   |   |   |

----

|                                                                             | Cost of Sales                                           |
|----------------------------------------------------------------------------------|---------------------------------------------------------|
| Fiscal year ended September 30, 2008                                             | $                                                       | 4,344 |   |
|        Volumes and mix                             |                                                    | (1,117 | ) |
|        Foreign exchange                            |                                                    | (252 | ) |
|        Depreciation expense                        |                                                    | (6 | ) |
|        Research, development and engineering costs |                                                    | (3 | ) |
|        Other cost reductions, net                  |                                                    | (186 | ) |
| Fiscal year ended September 30, 2009                                             | $          | 2,780 |   |
|                                                                             |                                                    |   |   |

| Lower material costs                                                  | $                                                       | (1,166 | )      |
|-----------------------------------------------------------------------|---------------------------------------------------------|--------|--------|
| Lower labor and overhead costs                                        |                                                    | (399   | )      |
| Other                                                                 |                                                    | 1      |   |
|        Total decrease in costs of sales | $          | (1,564 | )      |
|                                                                  |                                                    |   |   |

|                                                                            |                     | 2009                                               |                     | 2008       |                     | Increase (Decrease)                                         |
|---------------------------------------------------------------------------------|--------------------------|----------------------------------------------------|--------------------------|------------|--------------------------|-------------------------------------------------------------|
| SG&A                                                                        |      | Amount                                             |      | % of sales |      | Amount                                                      |      | % of sales |      |   |      |   |
|        Loss on sale of receivables                |                     | $                                                  | (5                       | )          |                     | (0.2                                                        | )% |   | $ | (21 | ) |   | (0.4 | )% |   | $ | (16 | ) |   | (0.2)pts |
|        Short- and long-term variable compensation |                     |                                               | 7                        |       |                     | 0.2                                                         | % |   |   | (40 | ) |   | (0.9 | )% |   |   | (47 | ) |   |        (1.1)pts |
|        All other SG&A                         |                     |                                               | (211                     | )          |                     | (6.8                                                        | )% |   |   | (247 | ) |   | (5.1 | )% |   |   | (36 | ) |   | 1.7pts |
| Total SG&A                                                                  |                     | $          | (209                     | )          |                     |           (6.8 | )% |   | $          | (308 | ) |   |           (6.4 | )% |   | $          | (99 | ) |   | 0.4pts |
|                                                                            |                     |                                               |                     |       |                     |                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

----

|                                                                                                      | Year Ended                       |
|-----------------------------------------------------------------------------------------------------------|----------------------------------|
|                                                                                                      | September 30,                    |
|                                                                                                      | 2009                             |       | 2008 |
| Net loss on sale of businesses                                                                            | $                                | (10 | ) |   | $ | (16 | ) |
| Asset impairment charges                                                                                  |                             | (265 | ) |   |   | — |   |
| Charge for indemnity obligation                                                                           |                             | (28 | ) |   |   | — |   |
| Restructuring costs                                                                                       |                             | (40 | ) |   |   | (20 | ) |
| LVS divestiture costs                                                                                     |                             | (9 | ) |   |   | (19 | ) |
| Operating income (loss), net                                                                              |                             | (65 | ) |   |   | 56 |   |
|        Income (loss) before income taxes                                    |                             | (417 | ) |   |   | 1 |   |
| Provision for income taxes                                                                                |                             | (21 | ) |   |   | (45 | ) |
|        Net loss                                                             |                             | (438 | ) |   |   | (44 | ) |
| Net loss attributable to noncontrolling interests                                                         |                             | (3 | ) |   |   | (4 | ) |
|        Loss from discontinued operations attributable to ArvinMeritor, Inc. | $       | (441 | ) |   | $       | (48 | ) |
|                                                                                                      |                             |   |   |   |   |   |   |

----

|                                                |                     | Segment EBITDA            |                     | Segment EBITDA Margins |
|-----------------------------------------------------|--------------------------|---------------------------|--------------------------|------------------------|
|                                                |                     |                      |                     |                   |   |   |   |   |   |   | % |   |   |   |   |   |   |   |   |
|                                                |      | 2009                      |      | 2008                   |      | $ Change |      | Change |      | 2009 |      | 2008 |      | Change |
| Commercial Truck                                    |                     | $                         | (38                      | )                      |   | $ | 115 |   | $ | (153 | ) |   | (133 | )% |   | (2.4 | )% |   | 3.9 | % |   | (6.3)pts |
| Industrial                                          |                     |                      | 135                      |                   |   |   | 140 |   |   | (5 | ) |   | (4 | )% |   | 15.2 | % |   | 12.5 | % |   | 2.7pts |
| Aftermarket & Trailer                           |                     |                      | 89                       |                   |   |   | 110 |   |   | (21 | ) |   | (19 | )% |   | 9.3 | % |   | 9.3 | % |   | —pts |
|        Segment EBITDA |                     | $     | 186                      |                   |   | $     | 365 |   | $     | (179 | ) |   |      (49 | )% |   |      6.0 | % |   |      7.6 | % |   |      (1.6)pts |
|                                                |                     |                      |                     |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                                                                           |                     | Commercial                |                     |       |                     |                      |                     | Aftermarket |   |                      |   |   |
|------------------------------------------------------------------------------------------------|--------------------------|---------------------------|--------------------------|------------|--------------------------|---------------------------|--------------------------|-------------|--------|---------------------------|--------|--------|
|                                                                                           |      | Truck                     |      | Industrial |      | & Trailer             |      | TOTAL       |
| Segment EBITDA–Year ended September 30, 2008                                             |                     | $                         | 115                      |       |                     | $                         | 140                      |        |   | $                         | 110    |   |   | $ | 365 |   |
|        Lower earnings from unconsolidated affiliates             |                     |                      | (15                      | )          |                     |                      | (4                       | )           |   |                      | (3     | )      |   |   | (22 | ) |
|        Lower warranty costs                                      |                     |                      | 16                       |       |                     |                      | 1                        |        |   |                      | 7      |   |   |   | 24 |   |
|        Lower pension and retiree medical costs                   |                     |                      | 14                       |       |                     |                      | 3                        |        |   |                      | 4      |   |   |   | 21 |   |
|        Prior year benefit for change in employee vacation policy |                     |                      | (7                       | )          |                     |                      | (1                       | )           |   |                      | (2     | )      |   |   | (10 | ) |
|        Volume, performance and other, net of cost reductions     |                     |                      | (161                     | )          |                     |                      | (4                       | )           |   |                      | (27    | )      |   |   | (192 | ) |
| Segment EBITDA – Year ended September 30, 2009                                           |                     | $     | (38                      | )          |                     | $     | 135                      |        |   | $     | 89     |   |   | $ |      186 |   |
|                                                                                      |                     |                      |                     |       |                     |                      |                     |        |   |                      |   |   |   |   |   |   |

----

|                                                                                                                  | Fiscal Year Ended September 30,  |
|-----------------------------------------------------------------------------------------------------------------------|----------------------------------|
|                                                                                                                  | 2010                             |      | 2009 |      | 2008 |
| OPERATING CASH FLOWS                                                                                                  |                             |   |   |   |   |   |   |   |   |   |   |
|        Income (loss) from continuing operations                                         | $                                | 12 |   |   | $ | (738 | ) |   | $ | (46 | ) |
|        Depreciation and amortization                                                    |                             | 70 |   |   |   | 70 |   |   |   | 76 |   |
|        Asset impairment charges                                                         |                             | 2 |   |   |   | 14 |   |   |   | — |   |
|        Loss on debt extinguishment                                                      |                             | 13 |   |   |   | — |   |   |   | 3 |   |
|        Deferred income tax expense (benefit)                                            |                             | (16 | ) |   |   | 641 |   |   |   | 82 |   |
|        Pension and retiree medical expense                                              |                             | 81 |   |   |   | 68 |   |   |   | 91 |   |
|        Pension and retiree medical contributions                                        |                             | (117 | ) |   |   | (95 | ) |   |   | (73 | ) |
|        Restructuring costs, net of payments                                             |                             | (8 | ) |   |   | 33 |   |   |   | (4 | ) |
|        Proceeds from termination of interest rate swaps and interest on note receivable |                             | 19 |   |   |   | — |   |   |   | 28 |   |
|        Decrease (increase) in working capital                                           |                             | (49 | ) |   |   | 231 |   |   |   | (51 | ) |
|        Changes in sales of receivables                                                  |                             | 60 |   |   |   | (257 | ) |   |   | 135 |   |
|        Other, net                                                                       |                             | 70 |   |   |   | (130 | ) |   |   | 62 |   |
| Cash flows provided by (used for) continuing operations                                                               |                             | 137 |   |   |   | (163 | ) |   |   | 303 |   |
| Cash flows provided by (used for) discontinued operations                                                             |                             | 74 |   |   |   | (132 | ) |   |   | (140 | ) |
| CASH FLOWS PROVIDED BY (USED FOR) OPERATING ACTIVITIES                                                                | $       | 211 |   |   | $       | (295 | ) |   | $       | 163 |   |
|                                                                                                                  |                             |   |   |   |   |   |   |   |   |   |   |

----

|                                                                                                  | Fiscal Year Ended September 30, |
|-------------------------------------------------------------------------------------------------------|---------------------------------|
|                                                                                                  | 2010                            |      | 2009 |      | 2008 |
| INVESTING CASH FLOWS                                                                                  |                            |   |   |   |   |   |   |   |   |   |   |
|        Capital expenditures                                             | $                               | (56 | ) |   | $ | (82 | ) |   | $ | (98 | ) |
|        Acquisitions of businesses and investments, net of cash acquired |                            | — |   |   |   | — |   |   |   | (60 | ) |
|        Other investing cash flows                                       |                            | 5 |   |   |   | 9 |   |   |   | 14 |   |
|        Net cash provided by (used for) discontinued operations          |                            | (13 | ) |   |   | 87 |   |   |   | (16 | ) |
| CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES                                                      | $                               |        (64 | ) |   | $ |        14 |   |   | $ |        (160 | ) |
|                                                                                                  |                            |   |   |   |   |   |   |   |   |   |   |

|                                                                                                           | Fiscal Year September 30, |
|----------------------------------------------------------------------------------------------------------------|---------------------------|
|                                                                                                           | 2010                      |      | 2009 |      | 2008 |
| FINANCING CASH FLOWS                                                                                           |                      |   |   |   |   |   |   |   |   |   |   |
|        Borrowings (payments) on prior accounts receivable securitization program | $                         | — |   |   | $ | (111 | ) |   | $ | 111 |   |
|        Borrowings (payments) on new accounts receivable securitization program   |                      | (83 | ) |   |   | 83 |   |   |   | — |   |
|        Borrowings (payments) on revolving credit facility, net                   |                      | (28 | ) |   |   | 28 |   |   |   | — |   |
|        Repayment of notes and term loan                                          |                      | (193 | ) |   |   | (83 | ) |   |   | (5 | ) |
|        Proceeds from debt issuance                                               |                      | 245 |   |   |   | — |   |   |   | — |   |
|        Borrowings (payments) on lines of credit and other                        |                      | 5 |   |   |   | (14 | ) |   |   | 6 |   |
|               Net change in debt              |                      | (54 | ) |   |   | (97 | ) |   |   | 112 |   |
|        Cash dividends                                                            |                      | — |   |   |   | (8 | ) |   |   | (29 | ) |
|        Issuance and debt extinguishment costs                                    |                      | (45 | ) |   |   | — |   |   |   | (6 | ) |
|        Proceeds from stock issuance                                              |                      | 209 |   |   |   | — |   |   |   | — |   |
|        Other financing activities                                                |                      | (1 | ) |   |   | — |   |   |   | — |   |
|        Net cash provided by (used for) discontinued operations                   |                      | (12 | ) |   |   | (1 | ) |   |   | 20 |   |
| CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES                                                               | $                         |        97 |   |   | $ |      (106 | ) |   | $ |        97 |   |
|                                                                                                           |                      |   |   |   |   |   |   |   |   |   |   |

----

|                                       | Total  |            | 2011   |      | 2012                         |      | 2013   |          | 2014-2015 |      | Thereafter                              |
|--------------------------------------------|--------|--------------------------------|--------|--------------------------|------------------------------|--------------------------|--------|------------------------------|-----------|--------------------------|-----------------------------------------|
| Total debt (1)                             | $      | 1,093                          |   | $                        | 9                            |                     | $      | 84                           |      | $                        | —                                 |   | $ | 250 |   | $ | 750 |
| Operating leases                           |   | 73                             |   |                     | 15                           |                     |   | 12                           |      |                     | 11                                      |   |   | 18 |   |   | 17 |
| Interest payments on long-term debt        |   | 655                            |   |                     | 76                           |                     |   | 72                           |      |                     | 69                                      |   |   | 137 |   |   | 301 |
|        Total | $      |      1,821 |   | $                        |      100 |                     | $      |      168 |      | $                        |        80 |   | $ |      405 |   | $ |      1,068 |
|                                       |   |                           |   |                     |                         |                     |   |                         |      |                     |                                    |   |   |   |   |   |   |

| (1) |      | Excludes the unamortized gain on swap termination of $18 million, unamortized discount on convertible notes of $77 million and discount of $5 million on the 10-5/8 percent notes due March 15, 2018. |
|-----|--------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                             | September 30, |
|------------------------------------------------------------------|---------------|
|                                                             | 2010          |      | 2009 |
| Fixed-rate debt securities                                       | $             | 579 |   |   | $ | 527 |   |
| Fixed-rate convertible notes                                     |          | 500 |   |   |   | 500 |   |
| Revolving credit facility                                        |          | — |   |   |   | 28 |   |
| Borrowings under U.S. accounts receivable securitization program |          | — |   |   |   | 83 |   |
| Unamortized discount on convertible notes                        |          | (77 | ) |   |   | (85 | ) |
| Unamortized gain on swap termination                             |          | 18 |   |   |   | 23 |   |
| Lines of credit and other                                        |          | 9 |   |   |   | 16 |   |
|        Total debt                  | $             |      1,029 |   |   | $ |      1,092 |   |
|                                                             |          |   |   |   |   |   |   |

|                                                                                                                                                                                       | Total                                 |                     | Unused as  |                                  | Current    |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------|--------------------------|------------|---------------------------------------|------------|
|                                                                                                                                                                                       | Facility Size                         |      | of 9/30/10 |                   | Expiration |
| On-balance sheet arrangements:                                                                                                                                                             |                                  |                     |       |                                  |       |   |   |
|        Revolving credit facility(1)                                                                                                                          | $                                     | 539                      |       | $                                     | 513        |   | Various |
|        Committed U.S. accounts receivable                                                                                                                    |                                  |                     |       |                                  |       |   |   |
|               securitization(2)                                                                                           |                                  | 125                      |       |                                  | 125        |   | October 2013 |
|                      Total on-balance sheet arrangements                               |                                  | 664                      |       |                                  | 638        |   |   |
|                                                                                                                                                                                       |                                  |                     |       |                                  |       |   |   |
| Off-balance sheet arrangements:                                                                                                                                                            |                                  |                     |       |                                  |       |   |   |
|        Committed accounts receivable factoring programs(2)                                                                                                   |                                  | 314                      |       |                                  | 181        |   | Various |
|        Other uncommitted factoring facilities(2)                                                                                                             |                                  | 36                       |       |                                  | 31         |   | Various |
|                      Total off-balance sheet arrangements                              |                                  | 350                      |       |                                  | 212        |   |   |
|                             Total available sources | $       | 1,014                    |       | $       | 850        |   |   |
|                                                                                                                                                                                       |                                  |                     |       |                                  |       |   |   |

| (1)    |      | Availability under the revolving credit facility is subject to a collateral test as discussed below. |
|--------|--------------------------|------------------------------------------------------------------------------------------------------|
|   |                     |                                                                                            |
| (2)    |                     | Availability subject to adequate eligible accounts receivable as described below.                    |

----

----

----

|                              | 2010   |                           | 2009                |
|-----------------------------------|--------|--------------------------------|---------------------|
|                              | U.S.   |       | Non-U.S.            |       | U.S. |       | Non-U.S. |
| Assumptions as of September 30:   |   |                           |                |   |   |   |   |
| Discount rate (1)                 | 4.90%  |                           | 2.50% – 5.00% |   | 5.70% |   | 3.00% – 6.25% |
| Assumed return on plan assets (1) | 8.50%  |                           | 2.50% – 8.00% |   | 8.50% |   | 3.00% – 8.00% |
| Rate of compensation increase     | 3.75%  |                           | 2.00% – 3.50% |   | 3.75% |   | 2.00% – 3.50% |

| (1) |      | The discount rate for the company’s significant non-U.S. pension plan was 5.00 percent, 5.50 percent and 6.75 percent for 2010, 2009 and 2008, respectively. The assumed return on plan assets for this plan was 8.00 percent for each of fiscal years 2010, 2009 and 2008.  |
|-----|--------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                          | Effect on All Plans – September 30, 2010 |
|-------------------------------|------------------------------------------------|
|                          |                                           |   | Increase (Decrease) in |   | Increase (Decrease) in |
|                          | Percentage Point Change                        |       | PBO |       | Pension Expense |
| Assumption:                   |                                           |   |   |   |   |   |   |   |   |   |
| Discount rate                 | -0.5 pts                                       |   | $ | 148 |   |   | $ | 8 |   |
|                          | +0.5 pts                                       |   |   | (135 | ) |   |   | (8 | ) |
| Assumed return on plan assets | -1.0 pts                                       |   |   | NA |   |   |   | 14 |   |
|                          | +1.0 pts                                       |   |   | NA |   |   |   | (14 | ) |
| NA — Not Applicable     |                                           |   |   |   |   |   |   |   |   |

|                                           | 2010   |       | 2009   |
|------------------------------------------------|--------|--------------------------------|--------|
| Assumptions as of September 30:                |   |                           |   |   |   |
| Discount rate                                  | 4.90   | %                              |   | 5.60 | % |
| Health care cost trend rate (weighted average) | 7.75   | %                              |   | 7.85 | % |
| Ultimate health care trend rate                | 5.00   | %                              |   | 5.00 | % |
| Year ultimate rate is reached                  | 2023   |                           |   | 2021 |   |

----

|                                             | 2010   |       | 2009   |
|--------------------------------------------------|--------|--------------------------------|--------|
| Effect on total of service and interest cost     |   |                           |   |   |   |   |   |
|        1% Increase | $      | 3                              |   |   | $ | 4 |   |
|        1% Decrease |   | (2                             | )      |   |   | (4 | ) |
| Effect on APBO                                   |   |                           |   |   |   |   |   |
|        1% Increase |   | 60                             |   |   |   | 65 |   |
|        1% Decrease |   |      (52   | )      |   |   |      (56 | ) |

- Past claims experience;  
- Sales history;  
- Product manufacturing and industry developments; and  
- Recoveries from third parties, where applicable. 

----

- Pending and future claims were estimated for a ten year period ending in fiscal year 2020. The ten-year  assumption is considered appropriate as Maremont has reached certain longer-term agreements with key  plaintiff law firms and filings of mesothelioma claims have been relatively stable over the last few years  resulting in an improvement in the reliability of future projections over a longer time period;   
- Maremont believes that the litigation environment will change significantly beyond ten years, and that the  reliability of estimates of future probable expenditures in connection with asbestos-related personal injury  claims declines for each year further in the future. As a result, estimating a probable liability beyond ten years  is difficult and uncertain;  
- The ultimate cost of resolving pending and future claims filed in Madison County, Illinois, a jurisdiction where  a substantial amount of Maremont’s claims are filed, will decline to reflect average outcomes throughout the  United States;  
- Defense and processing costs for pending and future claims filed outside of Madison County, Illinois will be at  the level consistent with Maremont’s prior experience; and  
- The ultimate indemnity cost of resolving nonmalignant claims with plaintiff’s law firms in jurisdictions  without an established history with Maremont cannot be reasonably estimated. Recent changes in tort law and  insufficient settlement history make estimating a liability for these nonmalignant claims difficult and uncertain. 

----

- Evaluations of current law and existing technologies;  
- The outcome of discussions with regulatory agencies;  
- Physical and scientific data at the site;  
- Government requirements and legal standards; and  
- Proposed remedies and technologies. 

----

- An assessment as to whether an adverse event or circumstance has triggered the need for an impairment review;  
- Undiscounted future cash flows generated by the asset; and  
- Probability and estimated future cash flows associated with alternative courses of action that are being considered to  recover the carrying amount of a long-lived asset. 

- Historical operating results;  
- Expectations of future earnings;  
- Tax planning strategies; and  
- The extended period of time over which retirement medical and pension liabilities will be paid. 

----

----

|                                                                                              | September 30, |       | September 30, |
|---------------------------------------------------------------------------------------------------|---------------|--------------------------------|---------------|
|                                                                                              | 2010          |                           | 2009          |
| Components of the liability balance (in millions):                                                |          |                           |          |   |   |   |   |
|        Principal amount of convertible notes                        | $             | 500                            |          |   | $ | 500 |   |
|        Unamortized discount on convertible notes                    |          | (77                            | )             |   |   | (85 | ) |
|               Net carrying value | $             |      423   |          |   | $ |      415 |   |

|                                     | Year Ended September 30, |
|------------------------------------------|--------------------------|
|                                     | 2010                     |       | 2009 |       | 2008 |
| Interest costs recognized (in millions): |                     |   |   |   |   |   |   |   |
| Contractual interest coupon              | $                        |      22 |   | $ |      22 |   | $ |      22 |
| Amortization of debt discount            |                     | 8 |   |   | 8 |   |   | 7 |
| Total                                    | $                        | 30 |   | $ | 30 |   | $ | 29 |

----

| Market Risk                       | Assuming a      |                           | Assuming a                                                                     |                           | Favorable /   |
|-----------------------------------|-----------------|--------------------------------|--------------------------------------------------------------------------------|--------------------------------|---------------|
|                              | 10% Increase in |                           | 10% Decrease                                                                   |                           | (Unfavorable) |
|                              | Rates           |       | in Rates                                                                       |       | Impact on     |
| Foreign Currency Sensitivity:     |            |                           |                                                                           |                           |          |   |
| Foreign currency denominated debt | 0.9             |                           |               (0.9 | )                              |          | Fair Value |

|                       | Assuming a 50   |                                                                           | Assuming a 50   |                           | Favorable /   |
|----------------------------|-----------------|--------------------------------------------------------------------------------|-----------------|--------------------------------|---------------|
|                       | BPS Increase in |                                                                           | BPS Decrease in |                           | (Unfavorable) |
|                       | Rates           |                                                       | Rates           |       | Impact on     |
| Interest Rate Sensitivity: |            |                                                                           |            |                           |          |   |   |   |
| Debt - fixed rate          | $               |              (40.2 | )               |                           | $             | 42.6 |   | Fair Value |
| Debt - variable rate(1)    |            | —                                                                        |            |                           |          | — |   | Cash Flow |

|        | (1) |        | Includes domestic and foreign debt. |
|--------------------------------------|-----|--------------------------------------|-------------------------------------|

----

----

|                                                                            | Year Ended September 30, |
|---------------------------------------------------------------------------------|--------------------------|
|                                                                            | 2010                     |       | 2009 |       | 2008 |
| Sales                                                                           | $                        | 3,590 |   |   | $ | 3,075 |   |   | $ | 4,819 |   |
| Cost of sales                                                                   |                     |      (3,171 | ) |   |   |      (2,780 | ) |   |   |      (4,344 | ) |
| GROSS MARGIN                                                                    |                     | 419 |   |   |   | 295 |   |   |   | 475 |   |
|        Selling, general and administrative        |                     | (289 | ) |   |   | (209 | ) |   |   | (308 | ) |
|        Restructuring costs                        |                     | (6 | ) |   |   | (61 | ) |   |   | — |   |
|        Asset impairment charges                   |                     | (2 | ) |   |   | (14 | ) |   |   | — |   |
|        Other operating expense, net               |                     | (6 | ) |   |   | (1 | ) |   |   | (3 | ) |
| OPERATING INCOME                                                                |                     | 116 |   |   |   | 10 |   |   |   | 164 |   |
|        Other income                               |                     | 2 |   |   |   | — |   |   |   | — |   |
|        Equity in earnings of affiliates           |                     | 48 |   |   |   | 15 |   |   |   | 37 |   |
|        Interest expense, net                      |                     | (106 | ) |   |   | (93 | ) |   |   | (86 | ) |
| INCOME (LOSS) BEFORE INCOME TAXES                                               |                     | 60 |   |   |   | (68 | ) |   |   | 115 |   |
|        Provision for income taxes                 |                     | (48 | ) |   |   | (670 | ) |   |   | (161 | ) |
| INCOME (LOSS) FROM CONTINUING OPERATIONS                                        |                     | 12 |   |   |   | (738 | ) |   |   | (46 | ) |
| INCOME (LOSS) FROM DISCONTINUED OPERATIONS, net of tax                          |                     | 14 |   |   |   | (438 | ) |   |   | (44 | ) |
| NET INCOME (LOSS)                                                               |                     | 26 |   |   |   | (1,176 | ) |   |   | (90 | ) |
| Less: Net income attributable to noncontrolling interests                       |                     | (14 | ) |   |   | (12 | ) |   |   | (15 | ) |
| NET INCOME (LOSS) ATTRIBUTABLE TO ARVINMERITOR, INC.                            | $                        | 12 |   |   | $ | (1,188 | ) |   | $ | (105 | ) |
|                                                                            |
| NET INCOME (LOSS) ATTRIBUTABLE TO ARVINMERITOR, INC.                            |                     |   |   |   |   |   |   |   |   |   |   |
|        Net loss from continuing operations        | $                        | (2 | ) |   | $ | (747 | ) |   | $ | (57 | ) |
|        Income (loss) from discontinued operations |                     | 14 |   |   |   | (441 | ) |   |   | (48 | ) |
|        Net income (loss)                          | $                        | 12 |   |   | $ | (1,188 | ) |   | $ | (105 | ) |
|                                                                            |
| BASIC EARNINGS (LOSS) PER SHARE                                                 |                     |   |   |   |   |   |   |   |   |   |   |
|        Continuing operations                      | $                        | (0.02 | ) |   | $ | (10.31 | ) |   | $ | (0.79 | ) |
|        Discontinued operations                    |                     | 0.16 |   |   |   | (6.08 | ) |   |   | (0.67 | ) |
|        Basic earnings (loss) per share            | $                        | 0.14 |   |   | $ | (16.39 | ) |   | $ | (1.46 | ) |
|                                                                            |
| DILUTED EARNINGS (LOSS) PER SHARE                                               |                     |   |   |   |   |   |   |   |   |   |   |
|        Continuing operations                      | $                        | (0.02 | ) |   | $ | (10.31 | ) |   | $ | (0.79 | ) |
|        Discontinued operations                    |                     | 0.16 |   |   |   | (6.08 | ) |   |   | (0.67 | ) |
|        Diluted earnings (loss) per share          | $                        | 0.14 |   |   | $ | (16.39 | ) |   | $ | (1.46 | ) |
|                                                                            |
| Basic and diluted average common shares outstanding                             |                     | 84.7 |   |   |   | 72.5 |   |   |   | 72.1 |   |
|                                                                            |                     |   |   |   |   |   |   |   |   |   |   |

----

|                                                                                                                                 |                           | September 30,                               |
|--------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|---------------------------------------------|
|                                                                                                                                 |                           | 2010                                        |       | 2009 |
| ASSETS                                                                                                                               |       |                                        |   |   |   |   |   |   |
| CURRENT ASSETS:                                                                                                                      |                           |                                        |   |   |   |   |   |   |
|        Cash and cash equivalents                                                                  |                           | $        | 343 |   |   | $        | 95 |   |
|        Receivables, trade and other, net                                                          |                           |                                        | 579 |   |   |   | 694 |   |
|        Inventories                                                                                |                           |                                        | 382 |   |   |   | 374 |   |
|        Other current assets                                                                       |                           |                                        | 76 |   |   |   | 97 |   |
|        Assets of discontinued operations                                                          |                           |                                        | 341 |   |   |   | 56 |   |
|               TOTAL CURRENT ASSETS                             |                           |                                        | 1,721 |   |   |   | 1,316 |   |
| NET PROPERTY                                                                                                                         |                           |                                        | 389 |   |   |   | 445 |   |
| GOODWILL                                                                                                                             |                           |                                        | 432 |   |   |   | 438 |   |
| OTHER ASSETS                                                                                                                         |                           |                                        | 337 |   |   |   | 306 |   |
|               TOTAL ASSETS                                     |                           | $                                           | 2,879 |   |   | $ | 2,505 |   |
|                                                                                                                                 |                           |                                        |   |   |   |   |   |   |
| LIABILITIES AND EQUITY (DEFICIT)                                                                                                     |                           |                                        |   |   |   |   |   |   |
| CURRENT LIABILITIES:                                                                                                                 |                           |                                        |   |   |   |   |   |   |
|        Short-term debt                                                                            |                           | $                                           | — |   |   | $ | 97 |   |
|        Accounts payable                                                                           |                           |                                        | 670 |   |   |   | 674 |   |
|        Other current liabilities                                                                  |                           |                                        | 358 |   |   |   | 411 |   |
|        Liabilities of discontinued operations                                                     |                           |                                        | 362 |   |   |   | 107 |   |
|               TOTAL CURRENT LIABILITIES                        |                           |                                        | 1,390 |   |   |   | 1,289 |   |
| LONG-TERM DEBT                                                                                                                       |                           |                                        | 1,029 |   |   |   | 995 |   |
| RETIREMENT BENEFITS                                                                                                                  |                           |                                        | 1,162 |   |   |   | 1,077 |   |
| OTHER LIABILITIES                                                                                                                    |                           |                                        | 321 |   |   |   | 310 |   |
| EQUITY (DEFICIT):                                                                                                                    |                           |                                        |   |   |   |   |   |   |
|        Common stock (September 30, 2010 and 2009, 94.1 and 74.0 shares                            |                           |                                        |   |   |   |   |   |   |
|               issued and outstanding, respectively)            |                           |                                        | 92 |   |   |   | 72 |   |
|        Additional paid-in capital                                                                 |                           |                                        | 886 |   |   |   | 699 |   |
|        Accumulated deficit                                                                        |                           |                                        | (1,220 | ) |   |   | (1,232 | ) |
|        Accumulated other comprehensive loss                                                       |                           |                                        | (812 | ) |   |   | (734 | ) |
|               Total deficit attributable to ArvinMeritor, Inc. |                           |                                        | (1,054 | ) |   |   | (1,195 | ) |
|        Noncontrolling interest                                                                    |                           |                                        | 31 |   |   |   | 29 |   |
|               TOTAL DEFICIT                                    |                           |                                        | (1,023 | ) |   |   | (1,166 | ) |
|               TOTAL LIABILITIES AND DEFICIT                    |                           | $                                           | 2,879 |   |   | $ | 2,505 |   |

----

|                                                                                                                                                          |                           | Year Ended September 30,                    |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|---------------------------------------------|
|                                                                                                                                                          |                           | 2010                                        |   | 2009 |   | 2008 |
| OPERATING ACTIVITIES                                                                                                                                          |                           |                                        |   |   |   |   |   |   |   |   |   |   |
|        CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES (see Note 26)                                                      |       | $        | 211 |   |       | $        | (295 | ) |       | $        | 163 |   |
| INVESTING ACTIVITIES                                                                                                                                          |                           |                                        |   |   |   |   |   |   |   |   |   |   |
|        Capital expenditures                                                                                                |                           |                                        | (56 | ) |   |   | (82 | ) |   |   | (98 | ) |
|        Acquisitions of businesses and investments, net of cash acquired                                                    |                           |                                        | — |   |   |   | — |   |   |   | (60 | ) |
|        Proceeds from disposition of property and businesses                                                                |                           |                                        | 5 |   |   |   | 3 |   |   |   | 9 |   |
|        Proceeds from investments and sale of marketable securities                                                         |                           |                                        | — |   |   |   | 6 |   |   |   | 5 |   |
|               Net investing cash flows used for continuing operations                   |                           |                                        | (51 | ) |   |   | (73 | ) |   |   | (144 | ) |
|        Net investing cash flows provided by (used for) discontinued operations                                             |                           |                                        | (13 | ) |   |   | 87 |   |   |   | (16 | ) |
| CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES                                                                                                              |                           |                                        | (64 | ) |   |   | 14 |   |   |   | (160 | ) |
| FINANCING ACTIVITIES                                                                                                                                          |                           |                                        |   |   |   |   |   |   |   |   |   |   |
|               Borrowings (payments) on prior accounts receivable securitization program |                           |                                        | — |   |   |   | (111 | ) |   |   | 111 |   |
|               Borrowings (payments) on new accounts receivable securitization program   |                           |                                        | (83 | ) |   |   | 83 |   |   |   | — |   |
|               Borrowings (payments) on revolving credit facility, net                   |                           |                                        | (28 | ) |   |   | 28 |   |   |   | — |   |
|               Proceeds from debt issuance                                               |                           |                                        | 245 |   |   |   | — |   |   |   | — |   |
|               Repayment of notes and term loan                                          |                           |                                        | (193 | ) |   |   | (83 | ) |   |   | (5 | ) |
|               Borrowings (payments) on lines of credit and other                        |                           |                                        | 5 |   |   |   | (14 | ) |   |   | 6 |   |
|        Net change in debt                                                                                                  |                           |                                        | (54 | ) |   |   | (97 | ) |   |   | 112 |   |
|        Cash dividends                                                                                                      |                           |                                        | — |   |   |   | (8 | ) |   |   | (29 | ) |
|        Proceeds from stock issuance                                                                                        |                           |                                        | 209 |   |   |   | — |   |   |   | — |   |
|        Debt and stock issuance and debt extinguishment costs                                                               |                           |                                        | (45 | ) |   |   | — |   |   |   | (6 | ) |
|        Other financing activities                                                                                          |                           |                                        | (1 | ) |   |   | — |   |   |   | — |   |
|               Net financing cash flows provided by (used for) continuing operations     |                           |                                        | 109 |   |   |   | (105 | ) |   |   | 77 |   |
|        Net financing cash flows provided by (used for) discontinued operations                                             |                           |                                        | (12 | ) |   |   | (1 | ) |   |   | 20 |   |
| CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES                                                                                                              |                           |                                        | 97 |   |   |   | (106 | ) |   |   | 97 |   |
| EFFECT OF CURRENCY EXCHANGE RATES ON CASH AND CASH                                                                                                            |                           |                                        |   |   |   |   |   |   |   |   |   |   |
|        EQUIVALENTS                                                                                                         |                           |                                        | 4 |   |   |   | (15 | ) |   |   | (12 | ) |
| CHANGE IN CASH AND CASH EQUIVALENTS                                                                                                                           |                           |                                        | 248 |   |   |   | (402 | ) |   |   | 88 |   |
| CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR                                                                                                                |                           |                                        | 95 |   |   |   | 497 |   |   |   | 409 |   |
| CASH AND CASH EQUIVALENTS AT END OF YEAR                                                                                                                      |                           | $                                           | 343 |   |   | $ | 95 |   |   | $ | 497 |   |
|                                                                                                                                                          |                           |                                        |   |   |   |   |   |   |   |   |   |   |

----

|                                                                                                                      |                           |                           |
|---------------------------------------------------------------------------------------------------------------------------|--------------------------------|--------------------------------|
|                                                                                                                      |                           |  Year Ended September 30, |
|                                                                                                                      |                           | 2010                           |   | 2009 |   | 2008 |
| ArvinMeritor, Inc. Shareowners:                                                                                           |                           |                           |   |   |   |   |
| COMMON STOCK                                                                                                              |                           |                           |       |   |   |   |
|        Beginning balance                                                               |       | $          | 72 |   |   | $     | 72 |   |       | $     | 72 |   |
|        Issuance of common stock                                                        |                           |                           | 20 |   |   |   | — |   |   |   | — |   |
|        Ending balance                                                                  |                           |                           | 92 |   |   |   | 72 |   |   |   | 72 |   |
| ADDITIONAL PAID-IN CAPITAL                                                                                                |                           |                           |   |   |   |   |   |   |   |   |   |   |
|        Beginning balance                                                               |                           |                           | 699 |   |   |   | 692 |   |   |   | 685 |   |
|        Equity based compensation expense                                               |                           |                           | 7 |   |   |   | 10 |   |   |   | 7 |   |
|        Issuance of common stock                                                        |                           |                           | 180 |   |   |   | — |   |   |   | — |   |
|        Issuance of restricted stock                                                    |                           |                           | — |   |   |   | (3 | ) |   |   | — |   |
|        Ending balance                                                                  |                           |                           | 886 |   |   |   | 699 |   |   |   | 692 |   |
| RETAINED EARNINGS (ACCUMULATED DEFICIT)                                                                                   |                           |                           |   |   |   |   |   |   |   |   |   |   |
|        Beginning balance                                                               |                           |                           | (1,232 | ) |   |   | (16 | ) |   |   | 123 |   |
|        Net income (loss)                                                               |                           |                           | 12 |   |   |   | (1,188 | ) |   |   | (105 | ) |
|        Cash dividends (per share $0.10: 2009; $0.40: 2008)                             |                           |                           | — |   |   |   | (8 | ) |   |   | (29 | ) |
|        Adjustment upon adoption of income tax guidance                                 |                           |                           | — |   |   |   | — |   |   |   | (5 | ) |
|        Adjustment upon adoption of retirement benefits guidance                        |                           |                           | — |   |   |   | (20 | ) |   |   | — |   |
|        Ending balance                                                                  |                           |                           | (1,220 | ) |   |   | (1,232 | ) |   |   | (16 | ) |
| TREASURY STOCK                                                                                                            |                           |                           |   |   |   |   |   |   |   |   |   |   |
|        Beginning balance                                                               |                           |                           | — |   |   |   | (3 | ) |   |   | (3 | ) |
|        Issuance of restricted stock                                                    |                           |                           | — |   |   |   | 3 |   |   |   | — |   |
|        Ending balance                                                                  |                           |                           | — |   |   |   | — |   |   |   | (3 | ) |
| ACCUMULATED OTHER COMPREHENSIVE LOSS                                                                                      |                           |                           |   |   |   |   |   |   |   |   |   |   |
|        Beginning balance                                                               |                           |                           | (734 | ) |   |   | (225 | ) |   |   | (272 | ) |
|        Foreign currency translation adjustments                                        |                           |                           | 44 |   |   |   | (63 | ) |   |   | (13 | ) |
|        Adjustments upon adoption of retirement benefits guidance, net of tax           |                           |                           | — |   |   |   | 9 |   |   |   | — |   |
|        Impact of sale of business                                                      |                           |                           | 31 |   |   |   | — |   |   |   | — |   |
|        Employee benefit related adjustments (net of tax of $2 in fiscal years 2010 and |                           |                           |   |   |   |   |   |   |   |   |   |   |
|               2009 and $44 in fiscal year 2008)     |                           |                           | (157 | ) |   |   | (465 | ) |   |   | 71 |   |
|        Unrealized gains (losses), net                                                  |                           |                           | 4 |   |   |   | 10 |   |   |   | (11 | ) |
|        Ending balance                                                                  |                           |                           | (812 | ) |   |   | (734 | ) |   |   | (225 | ) |
| TOTAL SHAREOWNERS’ EQUITY (DEFICIT) ATTRIBUTABLE TO                                                                 |                           |                           |   |   |   |   |   |   |   |   |   |   |
|        ARVINMERITOR, INC.                                                              |                           | $                              | (1,054 | ) |   | $ | (1,195 | ) |   | $ | 520 |   |
| Noncontrolling Interests:                                                                                                 |                           |                           |   |   |   |   |   |   |   |   |   |   |
|        Beginning balance                                                               |                           | $                              | 29 |   |   | $ | 75 |   |   | $ | 65 |   |
|        Net income attributable to noncontrolling interests                             |                           |                           | 14 |   |   |   | 12 |   |   |   | 15 |   |
|        Dividends declared or paid                                                      |                           |                           | (12 | ) |   |   | (19 | ) |   |   | (4 | ) |
|        Divestitures                                                                    |                           |                           | — |   |   |   | (18 | ) |   |   | — |   |
|        Other adjustments                                                               |                           |                           | — |   |   |   | (21 | ) |   |   | (1 | ) |
|        Ending balance                                                                  |                           |                           | 31 |   |   |   | 29 |   |   |   | 75 |   |
|        TOTAL EQUITY (DEFICIT)                                                          |                           | $                              | (1,023 | ) |   | $ | (1,166 | ) |   | $ | 595 |   |
| COMPREHENSIVE LOSS                                                                                                        |                           |                           |   |   |   |   |   |   |   |   |   |   |
|        Net income (loss)                                                               |                           | $                              | 26 |   |   | $ | (1,176 | ) |   | $ | (90 | ) |
|        Foreign currency translation adjustments                                        |                           |                           | 44 |   |   |   | (63 | ) |   |   | (13 | ) |
|        Adjustments upon adoption of retirement benefits guidance, net of tax           |                           |                           | — |   |   |   | 9 |   |   |   | — |   |
|        Impact of sale of business                                                      |                           |                           | 31 |   |   |   | — |   |   |   | — |   |
|        Employee benefit related adjustments, net of tax                                |                           |                           | (157 | ) |   |   | (465 | ) |   |   | 71 |   |
|        Unrealized gains (losses)                                                       |                           |                           | 4 |   |   |   | 10 |   |   |   | (11 | ) |
| Total comprehensive loss                                                                                                  |                           |                           | (52 | ) |   |   | (1,685 | ) |   |   | (43 | ) |
|        Less: Net income attributable to non-controlling interests                      |                           |                           | (14 | ) |   |   | (12 | ) |   |   | (15 | ) |
| Comprehensive loss attributable to ArvinMeritor, Inc.                                                                     |                           | $                              | (66 | ) |   | $ | (1,697 | ) |   | $ | (58 | ) |
|                                                                                                                      |                           |                           |   |   |   |   |   |   |   |   |   |   |

----

----

----

----

|                                                                                                   |       | September 30, 2010                                            |       | September 30, 2009 |
|--------------------------------------------------------------------------------------------------------|--------------------------------|---------------------------------------------------------------|--------------------------------|--------------------|
| Components of the liability balance (in millions):                                                     |                           |                                                          |                           |               |   |   |   |   |
|        Principal amount of convertible notes                        |                           | $           | 500                            |               |   | $           | 500 |   |
|        Unamortized discount on convertible notes                    |                           |                                                          | (77                            | )                  |   |   | (85 | ) |
|               Net carrying value |                           | $                                                             | 423                            |               |   | $ | 415 |   |
|                                                                                                   |                           |                                                          |                           |               |   |   |   |   |

|                                     |       | Year Ended September 30,  |
|------------------------------------------|--------------------------------|---------------------------|
|                                     |                           | 2010                      |       | 2009 |   | 2008 |
| Interest costs recognized (in millions): |                           |                      |   |   |   |   |   |   |   |
| Contractual interest coupon              |                           | $     | 22 |   | $     | 22 |       | $     | 22 |
| Amortization of debt discount            |                           |                      | 8 |   |   | 8 |   |   | 7 |
| Total                                    |                           | $                         | 30 |   | $ | 30 |   | $ | 29 |
|                                     |                           |                      |   |   |   |   |   |   |   |

|                                                                         |                           | Year Ended September 30,  |
|------------------------------------------------------------------------------|--------------------------------|---------------------------|
|                                                                         |                           | 2010                      |       | 2009 |       | 2008 |
| Sales                                                                        |       | $                         | 1,292 |   |   | $ | 1,542 |   |   | $ | 2,355 |   |
| Net gain (loss) on sales of businesses                                       |                           | $     | 5 |   |   | $     | (10 | ) |   | $     | (16 | ) |
| Goodwill and long-lived asset impairment charges                             |                           |                      | — |   |   |   | (265 | ) |   |   | — |   |
| Charge for indemnity obligation (see Note 23)                                |                           |                      | — |   |   |   | (28 | ) |   |   | — |   |
| Restructuring costs                                                          |                           |                      | (6 | ) |   |   | (40 | ) |   |   | (20 | ) |
| LVS Divestiture costs                                                        |                           |                      | (9 | ) |   |   | (9 | ) |   |   | (19 | ) |
| Other                                                                        |                           |                      | (15 | ) |   |   | — |   |   |   | — |   |
| Operating income (loss), net                                                 |                           |                      | 41 |   |   |   | (65 | ) |   |   | 56 |   |
|        Income (loss) before income taxes  |                           |                      | 16 |   |   |   | (417 | ) |   |   | 1 |   |
| Provision for income taxes                                                   |                           |                      | (2 | ) |   |   | (21 | ) |   |   | (45 | ) |
|        Net income (loss)                  |                           | $                         | 14 |   |   | $ | (438 | ) |   | $ | (44 | ) |
| Net income attributable to noncontrolling interests                          |                           |                      | — |   |   |   | (3 | ) |   |   | (4 | ) |
| Income (loss) from discontinued operations                                   |                           |                      |   |   |   |   |   |   |   |   |   |   |
|        attributable to ArvinMeritor, Inc. |                           | $                         | 14 |   |   | $ | (441 | ) |   | $ | (48 | ) |
|                                                                         |                           |                      |   |   |   |   |   |   |   |   |   |   |

----

----

----

----

|                                                                        |                           |            |                           |       |   |                     | Aftermarket                    |                           |                           |    |   |   |                     |    |   |
|-----------------------------------------------------------------------------|--------------------------------|-----------------|--------------------------------|------------|--------|--------------------------|--------------------------------|--------------------------------|--------------------------------|---------|--------|--------|--------------------------|---------|--------|
|                                                                        |       | CommercialTruck |       | Industrial |   | & Trailer            |       | CVS                            |       | Total   |
| Balance at September 30, 2008                                               |                           | $               | —                        |       |   | $                        | —                        |       | $                              | — |   |   | $                        | 451     |   |   | $ | 451 |   |
|        Foreign currency translation      |                           |            | —                        |       |   |                     | —                        |                           |                           | — |   |   |                     | (13     | )      |   |   | (13 | ) |
|        Allocation to new reporting units |                           |            | 154                            |       |   |                     | 109                            |                           |                           | 175     |   |   |                     | (438    | )      |   |   | — |   |
| Balance at September 30, 2009                                               |                           |            | 154                            |       |   |      | 109                            |                           |            | 175     |   |   |      | — |   |   |      | 438 |   |
|        Foreign currency translation      |                           |            | (3                             | )          |   |                     | —                        |                           |                           | (3      | )      |   |                     | — |   |   |   | (6 | ) |
| Balance at September 30, 2010                                               |                           | $               | 151                            |       |   | $                        | 109                            |                           | $                              | 172     |   |   | $                        | — |   |   | $ | 432 |   |
|                                                                        |                           |            |                           |       |   |                     |                           |                           |                           |    |   |   |                     |    |   |   |   |   |   |

----

|                                                                                             | Employee    |                                                       |       |                           |        |                                                           | Plant  |   |   |                                               |   |
|--------------------------------------------------------------------------------------------------|-------------|------------------------------------------------------------|------------|--------------------------------|-------------|----------------------------------------------------------------|--------|--------|--------|----------------------------------------------------|--------|
|                                                                                             | Termination |                                                       | Asset      |                           | Shutdown    |                                                           |   |   |   |
|                                                                                             | Benefits    |                                   | Impairment |       | & Other |                                       | Total  |
| Balance at September 30, 2007                                                                    | $           | 59                                                         |       |                           | $           | —                                                        |   |   | $      | —                                            |   |   | $ | 59 |   |
| Activity during the period:                                                                      |        |                                                       |       |                           |        |                                                           |   |   |   |                                               |   |   |   |   |   |
|        Charges to discontinued operations, net of reversals (1)    |        | 16                                                         |       |                           |        | 3                                                              |   |   |   | 1                                                  |   |   |   | 20 |   |
|        Asset write-offs                                            |        | —                                                    |       |                           |        | (3                                                             | )      |   |   | —                                            |   |   |   | (3 | ) |
|        Cash payments                                               |        | (4                                                         | )          |                           |        | —                                                        |   |   |   | —                                            |   |   |   | (4 | ) |
|        Other (2)                                                   |        | (41                                                        | )          |                           |        | —                                                        |   |   |   | (1                                                 | )      |   |   | (42 | ) |
| Balance at September 30, 2008                                                                    |        | 30                                                         |       |                           |        | —                                                        |   |   |   | —                                            |   |   |   | 30 |   |
| Activity during the period:                                                                      |        |                                                       |       |                           |        |                                                           |   |   |   |                                               |   |   |   |   |   |
|        Charges to continuing operations, net of reversals          |        | 40                                                         |       |                           |        | 4                                                              |   |   |   | 17                                                 |   |   |   | 61 |   |
|        Charges to discontinued operations, net of reversals(1)     |        | 30                                                         |       |                           |        | 2                                                              |   |   |   | 8                                                  |   |   |   | 40 |   |
|        Asset write-offs                                            |        | —                                                    |       |                           |        | (6                                                             | )      |   |   | —                                            |   |   |   | (6 | ) |
|        Retirement plan curtailment charges (see Note 21) (3)       |        | —                                                    |       |                           |        | —                                                        |   |   |   | (24                                                | )      |   |   | (24 | ) |
|        Reclassifications to liabilities of discontinued operations |        | (8                                                         | )          |                           |        | —                                                        |   |   |   | —                                            |   |   |   | (8 | ) |
|        Cash payments                                               |        | (27                                                        | )          |                           |        | —                                                        |   |   |   | (1                                                 | )      |   |   | (28 | ) |
|        Other (2)                                                   |        | (37                                                        | )          |                           |        | —                                                        |   |   |   | —                                            |   |   |   | (37 | ) |
| Balance at September 30, 2009                                                                    |        | 28                                                         |       |                           |        | —                                                        |   |   |   | —                                            |   |   |   | 28 |   |
| Activity during the period:                                                                      |        |                                                       |       |                           |        |                                                           |   |   |   |                                               |   |   |   |   |   |
|        Charges to continuing operations, net of reversals          |        | 3                                                          |       |                           |        | 2                                                              |   |   |   | 1                                                  |   |   |   | 6 |   |
|        Charges to discontinued operations, net of reversals(1)     |        | 6                                                          |       |                           |        | —                                                        |   |   |   | —                                            |   |   |   | 6 |   |
|        Asset write-offs                                            |        | —                                                    |       |                           |        | (2                                                             | )      |   |   | —                                            |   |   |   | (2 | ) |
|        Reclassifications to liabilities of discontinued operations |        | (6                                                         | )          |                           |        | —                                                        |   |   |   | —                                            |   |   |   | (6 | ) |
|        Cash payments                                               |        | (13                                                        | )          |                           |        | —                                                        |   |   |   | (1                                                 | )      |   |   | (14 | ) |
|        Other (2)                                                   |        | (7                                                         | )          |                           |        | —                                                        |   |   |   | —                                            |   |   |   | (7 | ) |
| Balance at September 30, 2010                                                                    | $           |            11 |       |                           | $           |           — |   |   | $      |         — |   |   | $ |           11 |   |
|                                                                                             |

| (1)    |       | Charges to discontinued operations reserves are included in discontinued operations in the consolidated statement of operations.                                                                                                                                                                                         |
|--------|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |
| (2)    |                           | Includes $8 million, $37 million and $40 million of payments associated with discontinued operations included in restructuring reserves at September 30, 2010, 2009 and 2008, respectively.                                                                                                                              |
|   |
| (3)    |                           | Retirement plan curtailment charges relate to pension termination benefits of $16 million and $8 million associated with the closure of Tilbury and Milton, respectively. These amounts are included in retirement benefits and liabilities of discontinued operations, respectively, in the consolidated balance sheet. |

----

|                                                                                                     | Commercial |                             |       |                           |          | Aftermarket                      |     |   |                             |   |
|----------------------------------------------------------------------------------------------------------|------------|----------------------------------|------------|--------------------------------|---------------|----------------------------------|----------|--------|----------------------------------|--------|
|                                                                                                     | Truck      |         | Industrial |       | & Trailer |         | Total(1) |
| Fiscal year 2010:                                                                                        |       |                             |       |                           |          |                             |     |   |                             |   |   |   |   |
|        Performance Plus actions                                            | $          | 5                                |       |                           | $             |      — |     | $      | —                          |   | $ | 5 |   |
|        Other                                                               |       |      — |       |                           |          | 1                                |     |   |      — |   |   | 1 |   |
|               Total restructuring costs | $          | 5                                |       |                           | $             | 1                                |     | $      | —                          |   | $ | 6 |   |
|                                                                                                     |
| Fiscal year 2009:                                                                                        |       |                             |       |                           |          |                             |     |   |                             |   |   |   |   |
|        Performance Plus actions                                            | $          | 32                               |       |                           | $             | —                          |     | $      | —                          |   | $ | 32 |   |
|        Fiscal year 2009 actions (reductions in workforce)                  |       | 20                               |       |                           |          | 2                                |     |   | 1                                |   |   | 23 |   |
|               Total restructuring costs | $          | 52                               |       |                           | $             | 2                                |     | $      | 1                                |   | $ |      55 |   |
|                                                                                                     |
| Fiscal year 2008:                                                                                        |       |                             |       |                           |          |                             |     |   |                             |   |   |   |   |
|        Adjustments and reversals                                           | $          | (1                               | )          |                           | $             | —                          |     | $      | —                          |   | $ | (1 | ) |
|               Total restructuring costs | $          | (1                               | )          |                           | $             | —                          |     | $      | —                          |   | $ | (1 | ) |
|                                                                                                     |       |                             |       |                           |          |                             |     |   |                             |   |   |   |   |

| (1) |       | Total segment restructuring costs do not include those recorded in unallocated corporate expense, net. These costs were $6 million in fiscal year 2009 and $1 million in fiscal year 2008, primarily related to employee termination benefits. There were no corporate restructuring costs in fiscal year 2010. |
|-----|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                       | September 30, |
|--------------------------------------------|---------------|
|                                       | 2010          |       | 2009 |
| Finished goods                             | $             |      156 |   | $ |      149 |
| Work in process                            |          | 62 |   |   | 54 |
| Raw materials, parts and supplies          |          | 164 |   |   | 171 |
|        Total | $             | 382 |   | $ | 374 |
|                                       |

|                                                      | September 30, |
|-----------------------------------------------------------|---------------|
|                                                      | 2010          |       | 2009 |
| Current deferred income tax assets (see Note 22)          | $             | 46 |   | $ | 19 |
| Customer reimbursable tooling and engineering             |          | — |   |   | 30 |
| Asbestos-related recoveries (see Note 23)                 |          | 11 |   |   | 8 |
| Deposits and collateral                                   |          | 3 |   |   | 7 |
| Prepaid and other                                         |          | 16 |   |   | 33 |
|        Other current assets | $             |      76 |   | $ |      97 |
|                                                      |

----

|                                                            | September 30, |
|-----------------------------------------------------------------|---------------|
|                                                            | 2010          |       | 2009 |
| Property at cost:                                               |          |   |   |   |   |   |   |
|        Land and land improvements | $             | 42 |   |   | $ | 46 |   |
|        Buildings                  |          | 267 |   |   |   | 254 |   |
|        Machinery and equipment    |          | 909 |   |   |   | 913 |   |
|        Company-owned tooling      |          | 150 |   |   |   | 163 |   |
|        Construction in progress   |          | 40 |   |   |   | 38 |   |
| Total                                                           |          | 1,408 |   |   |   |      1,414 |   |
| Less accumulated depreciation                                   |          |      (1,019 | ) |   |   | (969 | ) |
|        Net property               | $             | 389 |   |   | $ | 445 |   |
|                                                            |

|                                                         | September 30, |
|--------------------------------------------------------------|---------------|
|                                                         | 2010          |       | 2009 |
| Non-current deferred income tax assets (see Note 22)         | $             | 23 |   | $ | 27 |
| Investments in non-consolidated joint ventures (see Note 13) |          | 164 |   |   | 125 |
| Assets for uncertain tax positions (see Note 22)             |          | 4 |   |   | 11 |
| Prepaid pension costs (see Note 21)                          |          | 8 |   |   | 9 |
| Unamortized debt issuance costs (see Note 16)                |          | 32 |   |   | 24 |
| Capitalized software costs, net                              |          | 21 |   |   | 21 |
| Asbestos-related recoveries (see Note 23)                    |          | 55 |   |   | 47 |
| Note receivable due from EMCON, net of discount              |          | — |   |   | 16 |
| Other                                                        |          | 30 |   |   | 26 |
|        Other assets            | $             |      337 |   | $ |      306 |
|                                                         |

----

| Meritor WABCO Vehicle Control Systems (Commercial Truck)                  | 50 | % |
|---------------------------------------------------------------------------|----|---|
| Master Sistemas Automotivos Limitada (Commercial Truck)                   | 49 | % |
| Suspensys Sistemas Automotivos Ltda. (1) (Aftermarket & Trailer) | 24 | % |
| Sistemas Automotrices de Mexico S.A. de C.V. (Commercial Truck)           | 50 | % |
| Ege Fren Sanayii ve Ticaret A.S. (Commercial Truck)                       | 49 | % |
| Automotive Axles Limited (Commercial Truck)                               | 36 | % |
| Shanghai ArvinMeritor Automotive Parts Co. Ltd (2)                        | 50 | % |
| PHA Door Systems (2)                                                      | 49 | % |
| TRW Gabriel (2)                                                           | 49 | % |
| PHA Body Systems LLC (2)                                                  | 40 | % |

| (1)    |       | Total direct and indirect ownership interest of 50 percent.                                                                                                      |
|--------|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |
| (2)    |                           | These joint ventures are in the company’s light vehicle businesses which are included in discontinued operations in the consolidated financial statements. |

|                                                                                      | September 30, |
|-------------------------------------------------------------------------------------------|---------------|
|                                                                                      | 2010          |       | 2009 |
| Commercial Truck                                                                          | $             | 117 |   | $ | 88 |
| Industrial                                                                                |          | 17 |   |   | 13 |
| Aftermarket & Trailer                                                                 |          | 30 |   |   | 20 |
| LVS (1)                                                                                   |          | — |   |   | 4 |
|        Total investments in non-consolidated joint ventures | $             |      164 |   | $ |      125 |
|                                                                                      |

| (1) |       | Relates to investments in non-consolidated joint ventures in the company’s light vehicle businesses. The investment balances related to these non-consolidated joint ventures was $9 million at September 30, 2010 and are included in the assets of discontinued operations in the accompanying consolidated balance sheet. |
|-----|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                        | Year Ended September 30, |
|-----------------------------------------------------------------------------|--------------------------|
|                                                                        | 2010                     |       | 2009 |       | 2008 |
| Commercial Truck                                                            | $                        | 33 |   | $ | 8 |   | $ | 23 |
| Industrial                                                                  |                     | 3 |   |   | 1 |   |   | 5 |
| Aftermarket & Trailer                                                   |                     | 12 |   |   | 6 |   |   | 9 |
|        Total equity in earnings of affiliates | $                        |      48 |   | $ |      15 |   | $ |      37 |
|                                                                        |

----

|                                                   | September 30, |
|--------------------------------------------------------|---------------|
|                                                   | 2010          |       | 2009 |
| Current assets                                         | $             | 542 |   | $ | 323 |
| Non-current assets                                     |          | 256 |   |   | 221 |
|        Total assets      | $             | 798 |   | $ | 544 |
|                                                   |
| Current liabilities                                    | $             | 258 |   | $ | 168 |
| Non-current liabilities                                |          | 152 |   |   | 98 |
|        Total liabilities | $             |      410 |   | $ |      266 |
|                                                   |

|         | Year Ended September 30, |
|--------------|--------------------------|
|         | 2010                     |       | 2009 |       | 2008 |
| Sales        | $                        |      1,474 |   | $ |      868 |   | $ |      1,396 |
| Gross profit |                     | 216 |   |   | 111 |   |   | 143 |
| Net income   |                     | 126 |   |   | 42 |   |   | 99 |

|                                                           | September 30, |
|----------------------------------------------------------------|---------------|
|                                                           | 2010          |       | 2009 |
| Compensation and benefits                                      | $             |       179 |   | $ |       144 |
| Income taxes                                                   |          | 18 |   |   | 18 |
| Taxes other than income taxes                                  |          | 32 |   |   | 44 |
| Product warranties                                             |          | 28 |   |   | 58 |
| Restructuring (see Note 5)                                     |          | 11 |   |   | 28 |
| Asbestos-related liabilities (see Note 23)                     |          | 18 |   |   | 16 |
| Interest                                                       |          | 5 |   |   | 6 |
| Indemnity obligations – current portion (see Note 3)     |          | 3 |   |   | 9 |
| Other                                                          |          | 64 |   |   | 88 |
|        Other current liabilities | $             |       358 |   | $ |       411 |
|                                                           |

----

|                                                                                                 | 2010   |                       | 2009   |       | 2008   |
|------------------------------------------------------------------------------------------------------|--------|------------------------------------------------|--------|--------------------------------|--------|
| Total product warranties - beginning of year                                                         | $      |         109 |   |                           | $      |         102 |   |   | $ |         103 |   |
|        Accruals for product warranties                                 |   | 23                                             |   |                           |   | 33 |   |   |   | 48 |   |
|        Payments                                                        |   | (28                                            | )      |                           |   | (34 | ) |   |   | (42 | ) |
|        Change in estimates and other                                   |   | (11                                            | )      |                           |   | (10 | ) |   |   | 1 |   |
|        Product warranty activity related to discontinued operations(1) |   | 1                                              |   |                           |   | 18 |   |   |   | (8 | ) |
|        Reclassifications to liabilities of discontinued operations     |   | (40                                            | )      |                           |   | — |   |   |   | — |   |
| Total product warranties – end of year                                                         |   | 54                                             |   |                           |   | 109 |   |   |   | 102 |   |
| Less: non-current product warranties (see Note 15)                                                   |   | (26                                            | )      |                           |   | (51 | ) |   |   | (44 | ) |
|        Product warranties – current                              | $      | 28                                             |   |                           | $      | 58 |   |   |   | 58 |   |
|                                                                                                 |

| (1) |       | Product warranty activity related to discontinued operations includes accruals for product warranties of $10 million, $27 million and $16 million in fiscal years 2010, 2009 and 2008, respectively; and payments of $9 million, $9 million and $24 million in fiscal years 2010, 2009 and 2008, respectively. |
|-----|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                      | September 30, |
|-----------------------------------------------------------|---------------|
|                                                      | 2010          |       | 2009 |
| Asbestos-related liabilities (see Note 23)                | $             |       66 |   | $ |       61 |
| Non-current deferred income tax liabilities (see Note 22) |          | 94 |   |   | 73 |
| Liabilities for uncertain tax positions (see Note 22)     |          | 47 |   |   | 64 |
| Product warranties (see Note 14)                          |          | 26 |   |   | 51 |
| Environmental (see Note 23)                               |          | 13 |   |   | 10 |
| Indemnity obligations (see Note 3)                        |          | 32 |   |   | 19 |
| Other                                                     |          | 43 |   |   | 32 |
|        Other liabilities    | $             |      321 |   | $ |      310 |
|                                                      |

----

|                                                   | September 30, |
|--------------------------------------------------------|---------------|
|                                                   | 2010          |       | 2009 |
| 8-3/4 percent notes due 2012                           | $             | 84 |   |   | $ | 276 |   |
| 8-1/8 percent notes due 2015                           |          | 250 |   |   |   | 251 |   |
| 10-5/8 percent notes due 2018                          |          | 245 |   |   |   | — |   |
| 4.625 percent convertible notes due 2026(1)            |          | 300 |   |   |   | 300 |   |
| 4.0 percent convertible notes due 2027(1)              |          | 200 |   |   |   | 200 |   |
| Revolving credit facility                              |          | — |   |   |   | 28 |   |
| Accounts receivable securitization (see Note 7)        |          | — |   |   |   | 83 |   |
| Lines of credit and other                              |          | 9 |   |   |   | 16 |   |
| Unamortized gain on interest rate swap termination     |          | 18 |   |   |   | 23 |   |
| Unamortized discount on convertible notes (see Note 2) |          | (77 | ) |   |   | (85 | ) |
|        Subtotal          |          |      1,029 |   |   |   |      1,092 |   |
| Less: current maturities                               |          | — |   |   |   | (97 | ) |
|        Long-term debt    | $             | 1,029 |   |   | $ | 995 |   |
|                                                   |

| (1) |       | The 4.625 percent and 4.0 percent convertible notes contain a put and call feature, which allows for earlier redemption beginning in 2016 and 2019, respectively (see Convertible Securities below). |
|-----|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

- during any calendar quarter, if the closing price of the company’s common stock for 20 or more trading days in a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter exceeds 120 percent of the applicable conversion price;  
- during the five business day period after any five consecutive trading day period in which the average trading price per $1,000 initial principal amount of notes is equal to or less than 97 percent of the average conversion value of the notes during such five consecutive trading day period;   
- upon the occurrence of specified corporate transactions; or  
- if the notes are called by the company for redemption. 

----

----

|                                                 | September 30, |                     | September 30, |
|------------------------------------------------------|---------------|--------------------------|---------------|
|                                                 | 2010          |                     | 2009          |
|                                                 | Carrying      |                     | Fair          |   | Carrying |   | Fair |
|                                                 | Value         |      | Value         |      | Value |      | Value |
| Cash and cash equivalents                            | $             | 343                      |          | $ | 343 |   | $ | 95 |   |   | $ | 95 |   |
| Foreign exchange contracts – asset (liability) |          | —                  |          |   | — |   |   | (3 | ) |   |   | (3 | ) |
| Short-term debt                                      |          | —                  |          |   | — |   |   | 97 |   |   |   | 97 |   |
| Long-term debt                                       |          | 1,029                    |          |   | 1,132 |   |   | 995 |   |   |   | 885 |   |

----

|                                                                                              |                                  |                                 |        |                                 | Employee                              |                                 |   |   |                                  |    |   |   |                                  |
|---------------------------------------------------------------------------------------------------|---------------------------------------|--------------------------------------|-------------|--------------------------------------|---------------------------------------|--------------------------------------|--------|--------|---------------------------------------|---------|--------|--------|---------------------------------------|
|                                                                                              | Foreign                               |                                 | Benefit     |                                 |                                  |                                 |   |   |                                  |    |   |
|                                                                                              | Currency                              |                                 | Related     |                                 | Unrealized                            |                                 |   |   |                                  |
|                                                                                              | Translation                           |        | Adjustments |        | Gains (Losses)                        |        | Total  |
| Balance at September 30, 2007                                                                     |                                  | 215                                  |        |                                 |                                  | (488                                 | )      |   |                                  | 1       |   |   |                                  | (272 | ) |
|        2008 adjustment                                              |                                  | (13                                  | )           |                                 |                                  | 71                                   |   |   |                                  | — |   |   |                                  | 58 |   |
|        Deferred loss on cash flow hedges                            |                                  | —                              |        |                                 |                                  | —                              |   |   |                                  | (11     | )      |   |                                  | (11 | ) |
| Balance at September 30, 2008                                                                     |                                  | 202                                  |        |                                 |                                  | (417                                 | )      |   |                                  | (10     | )      |   |                                  | (225 | ) |
|        2009 adjustment                                              |                                  | (53                                  | )           |                                 |                                  | (465                                 | )      |   |                                  | — |   |   |                                  | (518 | ) |
|        Impact of sale of businesses on foreign currency translation |                                  |                                 |        |                                 |                                  |                                 |   |   |                                  |    |   |   |                                  |   |   |
|               adjustment         |                                  | (10                                  | )           |                                 |                                  | —                              |   |   |                                  | — |   |   |                                  | (10 | ) |
|        Adjustment upon adoption of retirement benefits guidance     |                                  | —                              |        |                                 |                                  | 9                                    |   |   |                                  | — |   |   |                                  | 9 |   |
|        Deferred loss on cash flow hedges                            |                                  | —                              |        |                                 |                                  | —                              |   |   |                                  | 8       |   |   |                                  | 8 |   |
|        Unrealized gain on investment                                |                                  | —                              |        |                                 |                                  | —                              |   |   |                                  | 2       |   |   |                                  | 2 |   |
| Balance at September 30, 2009                                                                     | $       | 139                                  |        |                                 | $       | (873                                 | )      |   | $       | — |   |   | $       | (734 | ) |
|        2010 adjustment                                              |                                  | 44                                   |        |                                 |                                  | (157                                 | )      |   |                                  | — |   |   |                                  | (113 | ) |
|        Impact of sale of businesses                                 |                                  | (4                                   | )           |                                 |                                  | 35                                   |   |   |                                  | — |   |   |                                  | 31 |   |
|        Deferred gain on cash flow hedges                            |                                  | —                              |        |                                 |                                  | —                              |   |   |                                  | 2       |   |   |                                  | 2 |   |
|        Reclassification of unrealized gain                          |                                  | —                              |        |                                 |                                  | —                              |   |   |                                  | (2      | )      |   |                                  | (2 | ) |
|        Unrealized gain on investment                                |                                  | —                              |        |                                 |                                  | —                              |   |   |                                  | 4       |   |   |                                  | 4 |   |
| Balance at September 30, 2010                                                                     | $                                     | 179                                  |        |                                 | $                                     | (995                                 | )      |   | $                                     | 4       |   |   | $                                     | (812 | ) |
|                                                                                              |                                  |                                 |        |                                 |                                  |                                 |   |   |                                  |    |   |   |                                  |   |   |

----

|                                  |    |                                 |   |                                  |         |                                 | Remaining |      | Aggregate |
|---------------------------------------|---------|--------------------------------------|--------|---------------------------------------|--------------|--------------------------------------|-----------|-----------|-----------|
|                                  |    |                                 |   | Exercise                              |         | Contractual                          |      | Intrinsic |
|                                  | Shares  |        | Price  |         | Life (years) |        | Value     |
| Outstanding — beginning of year | 1,754   |                                 |   | $       | 17.66        |                                 |      |      |      |
| Granted                               | — |                                 |   |                                  | —      |                                 |      |      |      |
| Exercised                             | — |                                 |   |                                  | —      |                                 |      |      |      |
| Cancelled or expired                  | (352    | )                                    |   |                                  | 19.40        |                                 |      |      |      |
| Outstanding — end of year       | 1,402   |                                 |   | $                                     | 17.22        |                                 | 3.2       |      | —   |
|                                  |    |                                 |   |                                  |         |                                 |      |      |      |
| Exercisable — end of year       | 1,302   |                                 |   | $                                     | 17.56        |                                 | 2.9       |      | —   |
|                                  |    |                                 |   |                                  |         |                                 |      |      |      |

|             | Outstanding |                                 | Exercisable  |
|------------------|-------------|--------------------------------------|--------------|
|             |        |                                 | Remaining    |   |   |   |   |   |   |   |   |
|             |        |                                 | Contractual  |   | Exercise |   |   |   | Exercise |
|             | Shares      |        | Life (years) |        | Price |        | Shares |        | Price |
| $12.00 to $16.00 | 499         |                                 | 5.3          |   | $       | 13.72 |   | 399 |   | $ | 13.96 |
| $16.01 to $21.00 | 873         |                                 | 2.1          |   |   | 18.93 |   | 873 |   |   | 18.93 |
| $21.01 to $26.00 | 30          |                                 | 1.4          |   |   | 25.65 |   | 30 |   |   | 25.65 |
|             | 1,402       |                                 |         |   |   |   |   | 1,302 |   |   |   |
|             |        |                                 |         |   |   |   |   |   |   |   |   |

----

|                           |      |   |                                 | Weighted-Average                      |
|--------------------------------|-----------|--------|--------------------------------------|---------------------------------------|
|                           | Number of |   | Grant-Date Fair                      |
| Non-vested Shares              |      | Shares |        | Value                                 |
| Non-vested - beginning of year | 1,841     |   |                                 | $       | 4.17 |
| Granted                        | 965       |   |                                 |                                  | 8.57 |
| Vested                         | (977      | )      |                                 |                                  | 7.17 |
| Forfeited                      | (371      | )      |                                 |                                  | 7.17 |
| Non-vested - end of year       | 1,458     |   |                                 |                                  | 4.30 |
|                           |      |   |                                 |                                  |   |

----

|                                           | 2010 |        | 2009   |        | 2008   |
|------------------------------------------------|------|--------------------------------------|--------|--------------------------------------|--------|
| Discount rate                                  | 4.60 | %                                    |   | 5.60                                 | %      |   | 6.90 | % |
| Health care cost trend rate (weighted average) | 7.75 | %                                    |   | 7.85                                 | %      |   | 7.60 | % |
| Ultimate health care trend rate                | 5.00 | %                                    |   | 5.00                                 | %      |   | 5.00 | % |
| Year ultimate rate is reached                  | 2023 |                                 |   | 2021                                 |   |   | 2021 |   |

|                                       | 2010                                  |        | 2009   |
|--------------------------------------------|---------------------------------------|--------------------------------------|--------|
| Retirees                                   | $       | 564                                  |   | $       | 598 |
| Employees eligible to retire               |                                  | 10                                   |   |   | 14 |
| Employees not eligible to retire           |                                  | 15                                   |   |   | 21 |
|        Total | $                                     | 589                                  |   | $ | 633 |
|                                       |                                  |                                 |   |   |   |

|                                                               | 2010                                  |        | 2009   |
|--------------------------------------------------------------------|---------------------------------------|--------------------------------------|--------|
| APBO — beginning of year                                     | $       | 633                                  |   |   | $       | 574 |   |
|        Service cost (1)              |                                  | 1                                    |   |   |   | 3 |   |
|        Interest cost (1)             |                                  | 32                                   |   |   |   | 46 |   |
|        Participant contributions     |                                  | 3                                    |   |   |   | 3 |   |
|        Plan amendments               |                                  | —                              |   |   |   | (9 | ) |
|        Actuarial losses              |                                  | 14                                   |   |   |   | 114 |   |
|        Curtailments                  |                                  | —                              |   |   |   | (5 | ) |
|        Divestitures (2)              |                                  | (49                                  | )      |   |   | — |   |
|        Termination benefits          |                                  | —                              |   |   |   | 2 |   |
|        Settlements                   |                                  | —                              |   |   |   | (28 | ) |
|        Foreign currency rate changes |                                  | 2                                    |   |   |   | (4 | ) |
|        Benefit payments              |                                  | (47                                  | )      |   |   | (63 | ) |
| APBO — end of year                                           |                                  | 589                                  |   |   |   | 633 |   |
| Other (3)                                                          |                                  | 5                                    |   |   |   | 5 |   |
| Retiree medical liability                                          | $                                     | 594                                  |   |   | $ | 638 |   |
| ____________________                                               |                                  |                                 |   |   |   |   |   |

| (1)    |        | The change in APBO for fiscal year 2009 includes $1 million in service cost and $9 million in interest cost resulting from the change in the measurement date from June to September to coincide with the company’s fiscal year end. |
|--------|--------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                 |                                                                                                                                                                                                                                       |
| (2)    |                                 | The decrease in APBO represents retiree medical liabilities of MSSC which were assumed by the buyer as part of the sale transaction that closed in the first quarter of fiscal year 2010 (see Note 3).                                     |
|   |                                 |                                                                                                                                                                                                                                       |
| (3)    |                                 | The company recorded a $5 million reserve for retiree medical liabilities at September 30, 2010 and 2009 as its best estimate for retroactive benefits related to the previously mentioned injunction.                                     |

----

|                                                  | September 30,                         |
|-------------------------------------------------------|---------------------------------------|
|                                                  | 2010                                  |        | 2009 |
| Current — included in compensation and benefits | $       | 45 |   | $       | 50 |
| Long-term — included in retirement benefits     |                                  | 549 |   |   | 588 |
| Retiree medical liability                             | $                                     | 594 |   | $ | 638 |
|                                                  |                                  |   |   |   |   |

|                                                     | 2010                                  |        | 2009   |
|----------------------------------------------------------|---------------------------------------|--------------------------------------|--------|
| Net actuarial loss                                       | $       | 250                                  |   |   | $       | 285 |   |
| Prior service benefit                                    |                                  | (24                                  | )      |   |   | (33 | ) |
| Amounts recorded in accumulated other comprehensive loss | $                                     | 226                                  |   |   | $ | 252 |   |
|                                                     |                                  |                                 |   |   |   |   |   |

|                                                       | 2010                                  |        | 2009   |        | 2008                                  |
|------------------------------------------------------------|---------------------------------------|--------------------------------------|--------|--------------------------------------|---------------------------------------|
| Service cost                                               | $       | 1                                    |   |                                 | $       | 2 |   |   | $       | 3 |   |
| Interest cost                                              |                                  | 32                                   |   |                                 |                                  | 37 |   |   |   | 35 |   |
| Amortization of:                                           |                                  |                                 |   |                                 |                                  |   |   |   |   |   |   |
|        Prior service benefit |                                  | (9                                   | )      |                                 |                                  | (9 | ) |   |   | (7 | ) |
|        Actuarial losses      |                                  | 35                                   |   |                                 |                                  | 27 |   |   |   | 27 |   |
| Termination benefits (1)                                   |                                  | —                              |   |                                 |                                  | 2 |   |   |   | — |   |
| Retiree medical expense – total company              |                                  | 59                                   |   |                                 |                                  | 59 |   |   |   | 58 |   |
| Less: Retiree medical expense of discontinued operations   |                                  | —                              |   |                                 |                                  | 5 |   |   |   | 5 |   |
| Retiree medical expense included in continuing operations  | $                                     | 59                                   |   |                                 | $                                     | 54 |   |   | $ | 53 |   |
| ____________________                                       |                                  |                                 |   |                                 |                                  |   |   |   |   |   |   |

| (1) |        | In 2009, the company recorded termination benefits of $2 million associated with the announced closure of its Commercial Truck brakes plant in Tilbury, Ontario. This expense is included in restructuring costs (see Note 5) in the consolidated statement of operations. |
|-----|--------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                             | 2010   |        | 2009   |
|--------------------------------------------------|--------|--------------------------------------|--------|
| Effect on total service and interest cost        |   |                                 |   |   |   |   |   |
|        1% Increase | $      | 3                                    |   |   | $ | 4 |   |
|        1% Decrease |   | (2                                   | )      |   |   | (4 | ) |
| Effect on APBO                                   |   |                                 |   |   |   |   |   |
|        1% Increase |   | 60                                   |   |   |   | 65 |   |
|        1% Decrease |   | (52                                  | )      |   |   | (56 | ) |

|                     |     |                                 |     | Gross  |
|--------------------------|----------|--------------------------------------|----------|--------|
|                     | Gross    |                                 | Medicare |
|                     | Benefit  |                                 | Part D   |
|                     | Payments |        | Receipts |
| Fiscal 2011              | $        | 48                                   |     | $      | 3 |
| Fiscal 2012              |     | 47                                   |     |   | 3 |
| Fiscal 2013              |     | 46                                   |     |   | 3 |
| Fiscal 2014              |     | 46                                   |     |   | 3 |
| Fiscal 2015              |     | 45                                   |     |   | 3 |
| Fiscal 2016 – 2020 |     | 218                                  |     |   | 18 |

----

|                          | U.S. Plans |
|-------------------------------|------------|
|                          | 2010       |        | 2009 |        | 2008 |
| Discount Rate                 | 4.90%      |   | 5.70% |   | 7.10% |
| Assumed return on plan assets | 8.50%      |   | 8.50% |   | 8.50% |
| Rate of compensation increase | 3.75%      |   | 3.75% |   | 3.75% |

|                              | Non-U.S. Plans     |
|-----------------------------------|--------------------|
|                              | 2010               |        | 2009 |        | 2008 |
| Discount Rate (1)                 | 2.50% —5.00% |   | 3.00% — 6.25% |   | 3.50% — 6.75% |
| Assumed return on plan assets (1) | 2.50% —8.00% |   | 3.00% — 8.00% |   | 3.00% — 8.00% |
| Rate of compensation increase     | 2.00% —3.50% |   | 2.00% — 3.50% |   | 2.00% — 5.00% |

| (1) |        | The discount rate for the company’s significant non-U.S. pension plan was 5.00 percent, 5.50 percent and 6.75 percent for 2010, 2009 and 2008, respectively. The assumed return on plan assets for this plan was 8.00 percent for each of fiscal years 2010, 2009 and 2008. |
|-----|--------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                               | 2010                                  |                                 | 2009      |
|--------------------------------------------------------------------|---------------------------------------|--------------------------------------|-----------|
|                                                               | U.S.                                  |        | Non- U.S. |        | Total |        | U.S. |        | Non- U.S. |        | Total |
| PBO — beginning of year                                      | $       | 1,047                                |      |   | $       | 806 |   |   | $       | 1,853 |   |   | $       | 883 |   |   | $       | 771 |   |   | $       | 1,654 |   |
|        Service cost (1)              |                                  | 6                                    |      |   |   | 10 |   |   |   | 16 |   |   |   | 8 |   |   |   | 14 |   |   |   | 22 |   |
|        Interest cost (1)             |                                  | 58                                   |      |   |   | 37 |   |   |   | 95 |   |   |   | 76 |   |   |   | 52 |   |   |   | 128 |   |
|        Participant contributions     |                                  | —                              |      |   |   | 2 |   |   |   | 2 |   |   |   | — |   |   |   | 2 |   |   |   | 2 |   |
|        Actuarial loss                |                                  | 154                                  |      |   |   | 42 |   |   |   | 196 |   |   |   | 157 |   |   |   | 80 |   |   |   | 237 |   |
|        Divestitures (2)              |                                  | —                              |      |   |   | (78 | ) |   |   | (78 | ) |   |   | — |   |   |   | — |   |   |   | — |   |
|        Termination benefits          |                                  | —                              |      |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 22 |   |   |   | 22 |   |
|        Benefit payments              |                                  | (64                                  | )         |   |   | (45 | ) |   |   | (109 | ) |   |   | (77 | ) |   |   | (63 | ) |   |   | (140 | ) |
|        Foreign currency rate changes |                                  | —                              |      |   |   | (12 | ) |   |   | (12 | ) |   |   | — |   |   |   | (72 | ) |   |   | (72 | ) |
| PBO — end of year                                            |                                  | 1,201                                |      |   |   | 762 |   |   |   | 1,963 |   |   |   | 1,047 |   |   |   | 806 |   |   |   | 1,853 |   |
| Change in plan assets                                              |                                  |                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fair value of assets — beginning of year                     |                                  | 726                                  |      |   |   | 610 |   |   |   | 1,336 |   |   |   | 841 |   |   |   | 698 |   |   |   | 1,539 |   |
|        Actual return on plan assets  |                                  | 60                                   |      |   |   | 45 |   |   |   | 105 |   |   |   | (44 | ) |   |   | 25 |   |   |   | (19 | ) |
|        Employer contributions        |                                  | 43                                   |      |   |   | 37 |   |   |   | 80 |   |   |   | 6 |   |   |   | 26 |   |   |   | 32 |   |
|        Participant contributions     |                                  | —                              |      |   |   | 2 |   |   |   | 2 |   |   |   | — |   |   |   | 2 |   |   |   | 2 |   |
|        Divestitures (2)              |                                  | —                              |      |   |   | (57 | ) |   |   | (57 | ) |   |   | — |   |   |   | — |   |   |   | — |   |
|        Benefit payments              |                                  | (64                                  | )         |   |   | (45 | ) |   |   | (109 | ) |   |   | (77 | ) |   |   | (63 | ) |   |   | (140 | ) |
|        Foreign currency rate changes |                                  | —                              |      |   |   | (3 | ) |   |   | (3 | ) |   |   | — |   |   |   | (78 | ) |   |   | (78 | ) |
| Fair value of assets — end of year                           |                                  | 765                                  |      |   |   | 589 |   |   |   | 1,354 |   |   |   | 726 |   |   |   | 610 |   |   |   | 1,336 |   |
| Funded status                                                      | $                                     | (436                                 | )         |   | $ | (173 | ) |   | $ | (609 | ) |   | $ | (321 | ) |   | $ | (196 | ) |   | $ | (517 | ) |
| ____________________                                               |                                  |                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (1)    |        | The change in PBO for fiscal year 2009 includes $4 million in service cost and $26 million in interest cost resulting from the change in the measurement date from June to September to coincide with the company’s year end. |
|--------|--------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                 |                                                                                                                                                                                                                                |
| (2)    |                                 | The decrease in PBO and fair value of assets represents the net pension liabilities of MSSC which were assumed by the buyer as part of the sale transaction that closed in the first quarter of fiscal year 2010 (see Note 3).      |

|                    | 2010                                  |                                 | 2009     |
|-------------------------|---------------------------------------|--------------------------------------|----------|
|                    | U.S.                                  |        | Non-U.S. |        | Total |        | U.S. |        | Non-U.S. |        | Total |
| Non-current assets      | $       | —                              |     |   | $       | 9 |   |   | $       | 9 |   |   | $       | — |   |   | $       | 9 |   |   | $       | 9 |   |
| Current liabilities     |                                  | (5                                   | )        |   |   | (3 | ) |   |   | (8 | ) |   |   | (5 | ) |   |   | (3 | ) |   |   | (8 | ) |
| Non-current liabilities |                                  | (431                                 | )        |   |   | (179 | ) |   |   | (610 | ) |   |   | (316 | ) |   |   | (202 | ) |   |   | (518 | ) |
| Net amount recognized   | $                                     | (436                                 | )        |   | $ | (173 | ) |   | $ | (609 | ) |   | $ | (321 | ) |   | $ | (196 | ) |   | $ | (517 | ) |
|                    |                                  |                                 |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                         | 2010                                  |                                 | 2009     |
|----------------------------------------------|---------------------------------------|--------------------------------------|----------|
|                                         | U.S.                                  |        | Non-U.S. |        | Total |        | U.S. |        | Non-U.S. |        | Total |
| Net actuarial loss                           | $       | 512                                  |     | $       | 259 |   | $       | 771 |   | $       | 373 |   | $       | 253 |   |   | $       | 626 |   |
| Prior service cost (benefit)                 |                                  | —                              |     |   | — |   |   | — |   |   | — |   |   | (5 | ) |   |   | (5 | ) |
| Amounts recorded in other comprehensive loss | $                                     | 512                                  |     | $ | 259 |   | $ | 771 |   | $ | 373 |   | $ | 248 |   |   | $ | 621 |   |
|                                         |                                  |                                 |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                          | September 30,                         |
|---------------------------------------------------------------|---------------------------------------|
|                                                          | 2010                                  |        | 2009 |
| Pension liability (1)                                         | $       | 587 |   | $       | 498 |
| Retiree medical liability — long term (see Note 20) (1) |                                  | 549 |   |   | 540 |
| Other                                                         |                                  | 26 |   |   | 39 |
| Total retirement benefits                                     | $                                     | 1,162 |   | $ | 1,077 |
| ____________________                                          |                                  |   |   |   |   |

| (1) |        | The table above excludes pension liabilities of $23 million and $20 million for fiscal years 2010 and 2009, respectively, and retiree medical liabilities of $48 million for fiscal year 2009 recorded in liabilities of discontinued operations in the consolidated balance sheet. |
|-----|--------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|        | 2010                                  |                                 | 2009   |
|-------------|---------------------------------------|--------------------------------------|--------|
|        | ABO                                   |                                 | Assets |   |   |   |   | ABO |   | Assets |   |   |   |
|        | Exceeds                               |                                 | Exceed |   |   |   |   | Exceeds |   | Exceed |   |   |   |
|        | Assets                                |        | ABO    |        | Total |        | Assets |         | ABO |        | Total |
| PBO         | $       | 1,959                                |   | $ | 4 |   | $       | 1,963 |   | $       | 1,840 |   | $       | 13 |   | $       | 1,853 |
| ABO         |                                  | 1,948                                |   |   | 4 |   |   | 1,952 |   |   | 1,814 |   |   | 9 |   |   | 1,823 |
| Plan Assets |                                  | 1,341                                |   |   | 13 |   |   | 1,354 |   |   | 1,318 |   |   | 18 |   |   | 1,336 |

----

- Level 1 inputs use quoted prices in active markets.  
- Level 2 inputs use other inputs that are observable, either directly or indirectly. These Level 2 inputs include quoted prices for similar assets in active markets, and other inputs such as interest rates and yield curves that are observable at commonly quoted intervals.  
- Level 3 inputs are unobservable inputs, including inputs that are available in situations where there is little, if any, market activity for the related asset. 

----

| U.S. Plans                                                    | 2010                                  |
|---------------------------------------------------------------|---------------------------------------|
| Asset Category                                                | Level 1                               |        | Level 2 |        | Level 3 |        | Total |
| Equity investments                                            |                                  |   |   |   |   |   |   |   |   |   |   |
| U.S. – Large cap                                        | $       | 65 |   | $       | 10 |   | $       | — |   | $       | 75 |
| U.S. – Small cap                                        |                                  | 7 |   |   | — |   |   | — |   |   | 7 |
| World equity                                                  |                                  | 39 |   |   | 10 |   |   | — |   |   | 49 |
| Private equity                                                |                                  | — |   |   | — |   |   | 32 |   |   | 32 |
|        Total equity investments |                                  | 111 |   |   | 20 |   |   | 32 |   |   | 163 |
| Fixed income investments                                      |                                  |   |   |   |   |   |   |   |   |   |   |
| Government bonds – U.S. Treasury bonds                  |                                  | 136 |   |   | 5 |   |   | — |   |   | 141 |
| Corporate bonds – High yield                            |                                  | — |   |   | 15 |   |   | — |   |   | 15 |
| Corporate bonds – Emerging markets                      |                                  | — |   |   | 4 |   |   | — |   |   | 4 |
|        Total fixed income       |                                  | 136 |   |   | 24 |   |   | — |   |   | 160 |
| Commingled funds (1)                                          |                                  | — |   |   | 297 |   |   | — |   |   | 297 |
| Partnerships                                                  |                                  | — |   |   | 102 |   |   | 9 |   |   | 111 |
| Cash and cash equivalents                                     |                                  | 34 |   |   | — |   |   | — |   |   | 34 |
| Total assets at fair value                                    | $                                     | 281 |   | $ | 443 |   | $ | 41 |   | $ | 765 |
|                                                          |                                  |   |   |   |   |   |   |   |   |   |   |
| Non-U.S. Plans                                                | 2010                                  |
|---------------------------------------------------------------|---------------------------------------|
| Asset Category                                                | Level 1                               |        | Level 2 |        | Level 3 |        | Total |
| Equity investments                                            |                                  |   |   |   |   |   |   |   |   |   |   |
| World equity                                                  | $       | — |   | $       | 175 |   | $       | — |   | $       | 175 |
| Private equity                                                |                                  | — |   |   | — |   |   | 40 |   |   | 40 |
|        Total equity investments |                                  | — |   |   | 175 |   |   | 40 |   |   | 215 |
| Fixed income investments                                      |                                  |   |   |   |   |   |   |   |   |   |   |
| Government bonds                                              |                                  | — |   |   | 113 |   |   | — |   |   | 113 |
| Corporate bonds                                               |                                  | — |   |   | 122 |   |   | — |   |   | 122 |
|        Total fixed income       |                                  | — |   |   | 235 |   |   | — |   |   | 235 |
| Commingled funds (1)                                          |                                  | — |   |   | 90 |   |   | — |   |   | 90 |
| Real estate                                                   |                                  | — |   |   | — |   |   | 41 |   |   | 41 |
| Cash and cash equivalents                                     |                                  | 8 |   |   | — |   |   | — |   |   | 8 |
| Total assets at fair value                                    | $                                     | 8 |   | $ | 500 |   | $ | 81 |   | $ | 589 |
| ____________________                                          |                                  |   |   |   |   |   |   |   |   |   |   |

| (1) |        | Commingled funds primarily represent shares invested in open ended balanced mutual funds that invest in the public equity and fixed income markets across the globe. |
|-----|--------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| U.S. Plans               |                           | 2010       |
|--------------------------|--------------------------------|------------|
|                     |                           |       |   |   | Return on plan assets: |   |   |   |   |   |   |   |   |   |
|                     |                           | Fair Value |   | Attributable to |   | Net |   | Net |   | Fair Value |
|                     |                           | at         |   | Assets Held at |   | Purchases |   | Transfers |   | at |
|                     |                           | October 1  |   | September 30 |   | and |   | In/(Out) of |   | September 30 |
| Asset Category           |       | 2009       |       | 2010 |       | (Settlements) |       | Level 3 |       | 2010 |
| Private equity           |                           | $          | 27 |   | $ | 4 |   |   | $ | 1 |   | $ | — |   | $ | 32 |
| Partnerships             |                           |       | 9 |   |   | (1 | ) |   |   | 1 |   |   | — |   |   | 9 |
| Total Level 3 fair value |                           | $          | 36 |   | $ | 3 |   |   | $ | 2 |   | $ | — |   | $ | 41 |
|                     |                           |       |
|                     |                           |       |
| Non-U.S. Plans           |                           | 2010       |
|                     |                           |       |   |   | Return on plan assets: |   |   |   |   |   |   |   |   |   |
|                     |                           |       | Fair Value |   | Attributable to |   | Net |   | Net |   | Fair Value |
|                     |                           | at         |   | Assets Held at |   | Purchases |   | Transfers |   | at |
|                     |                           | October 1  |   | September 30 |   | and |   | In/(Out) of |   | September 30 |
| Asset Category           |                           | 2009       |   | 2010 |   | (Settlements) |   | Level 3 |   | 2010 |
| Private equity           |                           | $          | — |   | $ | 1 |   |   | $ | 39 |   | $ | — |   | $ | 40 |
| Real estate              |                           |       | 12 |   |   | 5 |   |   |   | 24 |   |   | — |   |   | 41 |
| Total Level 3 fair value |                           | $          | 12 |   | $ | 6 |   |   | $ | 63 |   | $ | — |   | $ | 81 |
|                |

|                                                           |       | 2010   |                  | 2009   |       | 2008   |
|----------------------------------------------------------------|--------------------------------|--------|-------------------------------------------|--------|--------------------------------|--------|
| Service cost                                                   |                           | $      | 16                                        |   |                           | $      | 18 |   |   | $ | 28 |   |
| Interest cost                                                  |                           |   | 95                                        |   |                           |   | 102 |   |   |   | 107 |   |
| Assumed rate of return on plan assets                          |                           |   |        (113 | )      |                           |   |        (116 | ) |   |   |        (123 | ) |
| Amortization of —                                        |                           |   |                                      |   |                           |   |   |   |   |   |   |   |
|        Prior service cost (1)    |                           |   | (6                                        | )      |                           |   | — |   |   |   | 2 |   |
|        Actuarial losses          |                           |   | 37                                        |   |                           |   | 19 |   |   |   | 33 |   |
| Special termination benefits (2)                               |                           |   | —                                   |   |                           |   | 21 |   |   |   | — |   |
| Net periodic pension expense – total company             |                           |   | 29                                        |   |                           |   | 44 |   |   |   | 47 |   |
| Less: Net periodic pension expense of discontinued operations  |                           |   | 7                                         |   |                           |   | 14 |   |   |   | 9 |   |
| Net periodic pension expense included in continuing operations |                           | $      | 22                                        |   |                           | $      | 30 |   |   | $ | 38 |   |
|                                                      |

| (1)    |       | The company recorded a reduction in pension expense of $7 million in the fourth quarter of fiscal year 2010 as a result of the pension curtailment triggered by the freeze of its U.K. pension plan. The benefit recorded as part of the curtailment included the recognition of $5 million of negative prior service costs which were being amortized into net periodic pension expense over the active participants remaining average service life.                                                                                 |
|--------|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (2)    |                           | In 2009, the company recorded pension termination benefits of $14 million and $7 million associated with the announced closure of its Commercial Truck brakes plant in Tilbury and its coil spring operations in Milton, Ontario, respectively. The expense associated with the Tilbury plant closure is included in restructuring costs (see Note 5) in the consolidated statement of operations. The charge related to the Milton plant closure is recorded in discontinued operations in the consolidated statement of operations. |

----

|                             |       | U.S.   |                | Non U.S. |       | Total                                   |
|----------------------------------|--------------------------------|--------|-----------------------------------------|----------|--------------------------------|-----------------------------------------|
| Expected employer contributions: |                           |   |                                    |     |                           |                                    |   |   |   |
| Fiscal 2011                      |                           | $      |        23 |     | $                              |        31 |   | $ |        54 |
| Expected benefit payments:       |                           |   |                                    |     |                           |                                    |   |   |   |
| Fiscal 2011                      |                           |   | 65                                      |     |                           | 37                                      |   |   | 102 |
| Fiscal 2012                      |                           |   | 65                                      |     |                           | 38                                      |   |   | 103 |
| Fiscal 2013                      |                           |   | 66                                      |     |                           | 40                                      |   |   | 106 |
| Fiscal 2014                      |                           |   | 67                                      |     |                           | 46                                      |   |   | 113 |
| Fiscal 2015                      |                           |   | 68                                      |     |                           | 45                                      |   |   | 113 |
| Fiscal 2016-2020                 |                           |   | 361                                     |     |                           | 220                                     |   |   | 581 |

|                                       |       | 2010   |                 | 2009   |       | 2008   |
|--------------------------------------------|--------------------------------|--------|------------------------------------------|--------|--------------------------------|--------|
| U.S. income (loss)                         |                           | $      |        (66 | )      |                           | $      | (33 | ) |   | $ | 19 |
| Foreign income (loss)                      |                           |   | 126                                      |   |                           |   |        (35 | ) |   |   |        96 |
|        Total |                           | $      | 60                                       |   |                           | $      | (68 | ) |   | $ | 115 |
|                                       |

|                                                 |       | 2010   |                 | 2009   |       | 2008   |
|------------------------------------------------------|--------------------------------|--------|------------------------------------------|--------|--------------------------------|--------|
| Current tax benefit (expense):                       |                           |   |                                     |   |                           |   |   |   |   |   |   |   |
|        U.S.            |                           | $      | 1                                        |   |                           | $      | 1 |   |   | $ | (10 | ) |
|        Foreign         |                           |   | (64                                      | )      |                           |   | (28 | ) |   |   | (68 | ) |
|        State and local |                           |   | (1                                       | )      |                           |   | (2 | ) |   |   | (1 | ) |
| Total current tax expense                            |                           |   |        (64 | )      |                           |   |        (29 | ) |   |   |        (79 | ) |
| Deferred tax benefit (expense):                      |                           |   |                                     |   |                           |   |   |   |   |   |   |   |
|                                                 |                           |   |                                     |   |                           |   |   |   |   |   |   |   |
|        U.S.            |                           |   | (7                                       | )      |                           |   | (557 | ) |   |   | (51 | ) |
|        Foreign         |                           |   | 22                                       |   |                           |   | (86 | ) |   |   | (30 | ) |
|        State and local |                           |   | 1                                        |   |                           |   | 2 |   |   |   | (1 | ) |
| Total deferred tax benefit (expense)                 |                           |   | 16                                       |   |                           |   | (641 | ) |   |   | (82 | ) |
| Income tax benefit (expense)                         |                           | $      | (48                                      | )      |                           | $      | (670 | ) |   | $ | (161 | ) |
|                                                 |

----

|                                                                              |                           | September 30, |
|-----------------------------------------------------------------------------------|--------------------------------|---------------|
|                                                                              |       | 2010          |       | 2009 |
| Accrued compensation and benefits                                                 |                           | $             | 34 |   |   | $ | 40 |   |
| Accrued product warranties                                                        |                           |          | 19 |   |   |   | 10 |   |
| Inventory costs                                                                   |                           |          | 11 |   |   |   | 11 |   |
| Receivables                                                                       |                           |          | 14 |   |   |   | 12 |   |
| Accrued retirement medical costs                                                  |                           |          | 233 |   |   |   | 205 |   |
| Pensions                                                                          |                           |          | 205 |   |   |   | 176 |   |
| Property                                                                          |                           |          | 9 |   |   |   | 32 |   |
| Loss and credit carryforwards                                                     |                           |          | 909 |   |   |   | 875 |   |
| Other                                                                             |                           |          | 32 |   |   |   | 38 |   |
|        Sub-total                                    |                           |          | 1,466 |   |   |   | 1,399 |   |
|        Less: Valuation allowances                   |                           |          |        (1,217 | ) |   |   |        (1,187 | ) |
| Deferred income taxes - asset                                                     |                           | $             | 249 |   |   | $ | 212 |   |
|                                                                              |                           |          |   |   |   |   |   |   |
| Taxes on undistributed income                                                     |                           | $             | (180 | ) |   | $ | (145 | ) |
| Intangible assets                                                                 |                           |          | (72 | ) |   |   | (64 | ) |
| Debt basis difference                                                             |                           |          | (28 | ) |   |   | (31 | ) |
| Other                                                                             |                           |          | — |   |   |   | (2 | ) |
|        Deferred income taxes - liability            |                           | $             | (280 | ) |   | $ | (242 | ) |
|        Net deferred income tax assets (liabilities) |                           | $             | (31 | ) |   | $ | (30 | ) |
|                                                                              |

|                                                                                                 |                           | September 30, |
|------------------------------------------------------------------------------------------------------|--------------------------------|---------------|
|                                                                                                 |       | 2010          |       | 2009 |
| Other current assets (see Note 10)                                                                   |                           | $             | 46 |   |   | $ | 19 |   |
| Other current liabilities (see Note 14)                                                              |                           |          | (6 | ) |   |   | (3 | ) |
|        Net current deferred income taxes — asset                 |                           |          | 40 |   |   |   | 16 |   |
|                                                                                                 |                           |          |   |   |   |   |   |   |
| Other assets (see Note 12)                                                                           |                           |          | 23 |   |   |   | 27 |   |
| Other liabilities (see Note 15)                                                                      |                           |          | (94 | ) |   |   | (73 | ) |
|        Net non-current deferred income taxes — asset (liability) |                           | $             |        (71 | ) |   | $ |        (46 | ) |
|                                                                                                 |

----

|                                                              |       | 2010   |                 | 2009   |       | 2008   |
|-------------------------------------------------------------------|--------------------------------|--------|------------------------------------------|--------|--------------------------------|--------|
| Benefit (expense) for income taxes at statutory tax rate of 35%   |                           | $      | (21                                      | )      |                           | $      | 24 |   |   | $ | (40 | ) |
| State and local income taxes                                      |                           |   | 2                                        |   |                           |   | 1 |   |   |   | (1 | ) |
| Taxes on foreign income                                           |                           |   | 20                                       |   |                           |   | 14 |   |   |   | 7 |   |
| Judicial decisions                                                |                           |   | 11                                       |   |                           |   | — |   |   |   | — |   |
| Tax audit settlements                                             |                           |   | —                                  |   |                           |   | — |   |   |   | 10 |   |
| Goodwill                                                          |                           |   | (6                                       | )      |                           |   | (6 | ) |   |   | — |   |
| Benefit (tax) on undistributed foreign earnings                   |                           |   | (2                                       | )      |                           |   | (2 | ) |   |   | (69 | ) |
| Valuation allowances                                              |                           |   | (52                                      | )      |                           |   | (701 | ) |   |   | (66 | ) |
| Other                                                             |                           |   | —                                  |   |                           |   | — |   |   |   | (2 | ) |
|        Income tax benefit (expense) |                           | $      |        (48 | )      |                           | $      |        (670 | ) |   | $ |        (161 | ) |
|                                                              |

----

|                                                                                              |       | 2010   |                 | 2009   |       | 2008   |
|---------------------------------------------------------------------------------------------------|--------------------------------|--------|------------------------------------------|--------|--------------------------------|--------|
| Balance at beginning of the period                                                                |                           | $      |        104 |   |                           | $      |        131 |   |   | $ |        207 |   |
|        Additions to tax positions recorded during the current year  |                           |   | 9                                        |   |                           |   | 8 |   |   |   | 15 |   |
|        Reduction to tax position recorded in prior years            |                           |   | (11                                      | )      |                           |   | (35 | ) |   |   | (88 | ) |
|        Reductions to tax positions due to lapse of statutory limits |                           |   | (1                                       | )      |                           |   | (3 | ) |   |   | (3 | ) |
|        Translation, other                                           |                           |   | 10                                       |   |                           |   | 3 |   |   |   | — |   |
| Balance at end of the period                                                                      |                           | $      |        111 |   |                           | $      |        104 |   |   | $ |        131 |   |
|                                                                                    |

----

|                          |                           |            |                           |   | Non-Superfund                  |   |   |   |   |
|-------------------------------|--------------------------------|-----------------|--------------------------------|--------|--------------------------------|--------|--------|--------|--------|
|                          |       | Superfund Sites |       | Sites  |       | Total  |
| Balance at September 30, 2009 |                           | $               | 2                              |   | $                              | 15     |   |   | $      |        17 |   |
| Payments                      |                           |            | —                        |   |                           | (4     | )      |   |   | (4 | ) |
| Change in cost estimates (1)  |                           |            | 1                              |   |                           | 7      |   |   |   | 8 |   |
| Balance at September 30, 2010 |                           | $               | 3                              |   | $                              | 18     |   |   | $      | 21 |   |
|                     |

| (1) |       | There was $6 million, $1 million and $3 million of environmental remediation costs recognized in other operating expense in the consolidated statement of operations in fiscal years 2010, 2009 and 2008, respectively. In addition, $2 million of environmental remediation costs were recorded in loss from discontinued operations in the consolidated statement of operations for the fiscal year ended September 30, 2010. Environmental reserves are included in Other Current Liabilities (see Note 14) and Other Liabilities (see Note 15) in the consolidated balance sheet. |
|-----|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                  |                           | September 30, |
|---------------------------------------|--------------------------------|---------------|
|                                  |       | 2010          |       | 2009 |
| Pending and future claims             |                           | $             |        67 |   | $ |        61 |
| Asbestos-related insurance recoveries |                           |          | 57 |   |   | 43 |

- Pending and future claims were estimated for a ten year period ending in fiscal year 2020. The ten-year assumption is considered appropriate as Maremont has reached certain longer-term agreements with key plaintiff law firms and filings of mesothelioma claims have been relatively stable over the last few years resulting in an improvement in the reliability of future projections over a longer time period; 

----

- Maremont believes that the litigation environment will change significantly beyond ten years and that the reliability of estimates of future probable expenditures in connection with asbestos-related personal injury claims will decline for each year further in the future. As a result, estimating a probable liability beyond ten years is difficult and uncertain;  
- The ultimate cost of resolving pending and future claims filed in Madison County, Illinois, a jurisdiction where a substantial amount of Maremont’s claims are filed, will decline to reflect average outcomes throughout the United States;  
- Defense and processing costs for pending and future claims filed outside of Madison County, Illinois will be at the level consistent with Maremont’s prior experience; and  
- The ultimate indemnity cost of resolving nonmalignant claims with plaintiffs’ law firms in jurisdictions without an established history with Maremont cannot be reasonably estimated. Recent changes in tort law and insufficient settlement history make estimating a liability for these nonmalignant claims difficult and uncertain. 

----

----

- The Commercial Truck segment supplies drivetrain systems and components, including axles, drivelines and braking and suspension systems, primarily for medium- and heavy-duty trucks in North America, South America and Europe;  
- The  Industrial  segment supplies drivetrain systems including axles, brakes, drivelines and suspensions for off-highway, military, construction, bus and coach, fire and emergency and other industrial applications. This segment also includes the company’s businesses in Asia Pacific, including all on- and off-highway activities;  
- The  Aftermarket & Trailer  segment supplies axles, brakes, drivelines, suspension parts and other replacement and remanufactured parts, including transmissions, to commercial vehicle aftermarket customers. This segment also supplies a wide variety of undercarriage products and systems for trailer applications; and  

|                                                                                       |                           | Commercial |                                       |       |                           |                                       | Aftermarket &              |         |                                       |   |   |                                      |
|--------------------------------------------------------------------------------------------|--------------------------------|------------|--------------------------------------------|------------|--------------------------------|--------------------------------------------|--------------------------------|--------------|--------------------------------------------|--------|--------|-------------------------------------------|
|                                                                                       |       | Truck      |                   | Industrial |       | Trailer                                    |       | Eliminations |                   | Total  |
| Fiscal year 2010 Sales:                                                                    |                           |       |                                       |       |                           |                                       |                           |         |                                       |   |   |                                      |   |   |   |   |
|        External Sales                                        |                           | $          | 1,739                                      |       | $                              | 890                                        |                           | $            | 961                                        |   | $      | —                                   |   |   | $ | 3,590 |
|        Intersegment Sales                                    |                           |       | 221                                        |       |                           | 61                                         |                           |         | 8                                          |   |   | (290                                      | ) |   |   | — |
|               Total Sales |                           | $          | 1,960                                      |       | $                              | 951                                        |                           | $            | 969                                        |   | $      | (290                                      | ) |   | $ | 3,590 |
|                                                                                       |                           |       |                                       |       |                           |                                       |                           |         |                                       |   |   |                                      |   |   |   |   |
| Fiscal year 2009 Sales:                                                                    |                           |       |                                       |       |                           |                                       |                           |         |                                       |   |   |                                      |   |   |   |   |
|        External Sales                                        |                           | $          | 1,348                                      |       | $                              | 778                                        |                           | $            | 949                                        |   | $      | —                                   |   |   | $ | 3,075 |
|        Intersegment Sales                                    |                           |       | 218                                        |       |                           | 110                                        |                           |         | 5                                          |   |   | (333                                      | ) |   |   | — |
|               Total Sales |                           | $          | 1,566                                      |       | $                              | 888                                        |                           | $            | 954                                        |   | $      | (333                                      | ) |   | $ | 3,075 |
|                                                                                       |                           |       |                                       |       |                           |                                       |                           |         |                                       |   |   |                                      |   |   |   |   |
| Fiscal year 2008 Sales:                                                                    |                           |       |                                       |       |                           |                                       |                           |         |                                       |   |   |                                      |   |   |   |   |
|        External Sales                                        |                           | $          | 2,637                                      |       | $                              | 1,007                                      |                           | $            | 1,175                                      |   | $      | —                                   |   |   | $ | 4,819 |
|        Intersegment Sales                                    |                           |       | 285                                        |       |                           | 110                                        |                           |         | 8                                          |   |   | (403                                      | ) |   |   | — |
|               Total Sales |                           | $          |        2,922 |       | $                              |        1,117 |                           | $            |        1,183 |   | $      |        (403 | ) |   | $ |        4,819 |
|                                                                                       |

----

| Segment EBITDA:                                                                                         |       | 2010   |       | 2009   |       | 2008   |
|---------------------------------------------------------------------------------------------------------|--------------------------------|--------|--------------------------------|--------|--------------------------------|--------|
|        Commercial Truck                                                   |                           | $      | 85                             |   |                           | $      | (38 | ) |   | $ | 115 |   |
|        Industrial                                                         |                           |   | 94                             |   |                           |   | 135 |   |   |   | 140 |   |
|        Aftermarket & Trailer                                          |                           |   | 71                             |   |                           |   | 89 |   |   |   | 110 |   |
|               Segment EBITDA           |                           |   | 250                            |   |                           |   | 186 |   |   |   | 365 |   |
|        Unallocated legacy and corporate expense, net (1)                  |                           |   | (2                             | )      |                           |   | (11 | ) |   |   | (67 | ) |
|        Loss on sale of receivables                                        |                           |   | (4                             | )      |                           |   | (5 | ) |   |   | (21 | ) |
|        Depreciation and amortization                                      |                           |   | (70                            | )      |                           |   | (70 | ) |   |   | (76 | ) |
|        Noncontrolling interests                                           |                           |   | (14                            | )      |                           |   | (9 | ) |   |   | (11 | ) |
|        Asset impairment                                                   |                           |   | (2                             | )      |                           |   | (14 | ) |   |   | — |   |
|        Restructuring costs                                                |                           |   | (6                             | )      |                           |   | (61 | ) |   |   | — |   |
|        Interest expense, net                                              |                           |   | (106                           | )      |                           |   | (93 | ) |   |   | (86 | ) |
|        Provision for income taxes                                         |                           |   | (48                            | )      |                           |   | (670 | ) |   |   | (161 | ) |
|        Loss from continuing operations attributable to ArvinMeritor, Inc. |                           | $      | (2                             | )      |                           | $      | (747 | ) |   | $ | (57 | ) |
|                                                                                               |

| (1) |       | Unallocated legacy and corporate expense, net represents items that are not directly related to our business segments primarily include pension and retiree medical costs associated with recently sold businesses and other legacy costs for environmental and product liability. In fiscal year 2010 the company recognized approximately $7 million of income as a result of the pension curtailment triggered by the freeze of the company’s U.K. pension plan, of which $6 million is included in unallocated legacy and corporate expense, net. Fiscal years 2009 and 2008 include corporate costs previously allocated to businesses sold or held for sale of $3 million and $46 million, respectively. |
|-----|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Depreciation and Amortization:                                                                                     |       | 2010   |       | 2009        |       | 2008   |
|--------------------------------------------------------------------------------------------------------------------|--------------------------------|--------|--------------------------------|-------------|--------------------------------|--------|
|        Commercial Truck                                                              |                           | $      | 54                             |        | $                              | 53     |   | $ | 59 |
|        Industrial                                                                    |                           |   | 10                             |        |                           | 10     |   |   | 10 |
|        Aftermarket & Trailer                                                     |                           |   | 6                              |        |                           | 7      |   |   | 7 |
|               Total depreciation and amortization |                           | $      | 70                             |        | $                              | 70     |   | $ | 76 |
|                                                                                                               |                           |   |                           |        |                           |   |   |   |   |
| Capital Expenditures:                                                                                              |                           | 2010   |                           | 2009        |                           | 2008   |
|        Commercial Truck                                                              |                           | $      | 29                             |        | $                              | 68     |   | $ | 80 |
|        Industrial                                                                    |                           |   | 16                             |        |                           | 10     |   |   | 13 |
|        Aftermarket & Trailer                                                     |                           |   | 11                             |        |                           | 4      |   |   | 5 |
|               Total capital expenditures          |                           | $      | 56                             |        | $                              | 82     |   | $ | 98 |
|                                                                                                          |                           |   |                           |        |                           |   |   |   |   |
| Segment Assets:                                                                                                    |                           | 2010   |                           |   2009 |                           |   |   |
|        Commercial Truck                                                              |                           | $      | 1,207                          |        | $                              | 998    |   |   |   |
|        Industrial                                                                    |                           |   | 397                            |        |                           | 355    |   |   |   |
|        Aftermarket & Trailer                                                     |                           |   | 506                            |        |                           | 483    |   |   |   |
|               Total segment assets                |                           |   | 2,110                          |        |                           | 1,836  |   |   |   |
|        LVS(1)                                                                        |                           |   | —                        |        |                           | 398    |   |   |   |
|        Corporate(2)                                                                  |                           |   | 428                            |        |                           | 215    |   |   |   |
|        Discontinued operations(1)                                                    |                           |   | 341                            |        |                           | 56     |   |   |   |
|               Total assets                        |                           | $      | 2,879                          |        | $                              | 2,505  |   |   |   |
|                                                                                                          |

| (1)    |                           | Assets of the company’s former LVS reporting segment primarily relate to assets of the company’s Body Systems and remaining Chassis disposal groups and were reclassified to assets of discontinued operations in the consolidated balance at September 30, 2010. These assets are included in the line “Discontinued operations” in the above table. |
|--------|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |       |                                                                                                                                                                                                                                                                                                                                                                          |
| (2)    |                           | Corporate assets consist primarily of cash, deferred income taxes and prepaid pension costs. For fiscal years 2010 and 2009, segment assets include $145 million and $133 million, respectively, of receivables sold to ARC under the accounts receivable securitization and factoring agreements (see Note 7).                                                               |

----

|                                                     |       | 2010   |                   | 2009   |       | 2008                                       |
|----------------------------------------------------------|--------------------------------|--------|--------------------------------------------|--------|--------------------------------|--------------------------------------------|
| U.S.                                                     |                           | $      | 1,365                                      |   | $                              | 1,517                                      |   | $ | 1,819 |
| Canada                                                   |                           |   | 87                                         |   |                           | 91                                         |   |   | 113 |
| Mexico                                                   |                           |   | 337                                        |   |                           | 192                                        |   |   | 246 |
|        Total North America |                           |   | 1,789                                      |   |                           | 1,800                                      |   |   | 2,178 |
| Sweden                                                   |                           |   | 253                                        |   |                           | 204                                        |   |   | 509 |
| France                                                   |                           |   | 193                                        |   |                           | 194                                        |   |   | 525 |
| Other Europe                                             |                           |   | 309                                        |   |                           | 277                                        |   |   | 629 |
|        Total Europe        |                           |   | 755                                        |   |                           | 675                                        |   |   | 1,663 |
| Asia/Pacific                                             |                           |   | 499                                        |   |                           | 297                                        |   |   | 520 |
| South America, primarily Brazil                          |                           |   | 547                                        |   |                           | 303                                        |   |   | 458 |
|        Total sales         |                           | $      |        3,590 |   | $                              |        3,075 |   | $ |        4,819 |
|                                                |

|                                                     |       | 2010   |                         | 2009   |
|----------------------------------------------------------|--------------------------------|--------|--------------------------------------------------|--------|
| U.S.                                                     |                           | $      | 975                                              |   | $ | 940 |
| Canada                                                   |                           |   | 87                                               |   |   | 85 |
| Mexico                                                   |                           |   | 144                                              |   |   | 113 |
|        Total North America |                           |   | 1,206                                            |   |   | 1,138 |
| Sweden                                                   |                           |   | 109                                              |   |   | 120 |
| Switzerland                                              |                           |   | 131                                              |   |   | 130 |
| France                                                   |                           |   | 98                                               |   |   | 184 |
| Other Europe                                             |                           |   | 339                                              |   |   | 354 |
|        Total Europe        |                           |   | 677                                              |   |   | 788 |
| Asia/Pacific                                             |                           |   | 318                                              |   |   | 303 |
| South America, primarily Brazil                          |                           |   | 337                                              |   |   | 220 |
| Total                                                    |                           | $      |         2,538 |   | $ |         2,449 |
|                                                |

|                                                      |                           | 2010 Fiscal Quarters (Unaudited)         |
|-----------------------------------------------------------|--------------------------------|------------------------------------------|
|                                                      |       | First                                    |       | Second |       | Third |       | Fourth |       | 2010 |
|                                                      |                           | (In millions, except share related data) |
| Sales                                                     |                           | $                                        | 800 |   |   | $ | 868 |   |   | $ | 966 |   |   | $ | 956 |   |   | $ | 3,590 |   |
| Cost of sales                                             |                           |                                     | (711 | ) |   |   | (771 | ) |   |   | (849 | ) |   |   | (840 | ) |   |   | (3,171 | ) |
| Provision for income taxes                                |                           |                                     | (10 | ) |   |   | — |   |   |   | (21 | ) |   |   | (17 | ) |   |   | (48 | ) |
| Income (loss) from continuing operations attributable to  |                           |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        ArvinMeritor, Inc.   |                           |                                     | (4 | ) |   |   | 7 |   |   |   | (6 | ) |   |   | 1 |   |   |   | (2 | ) |
| Net income (loss) attributable to ArvinMeritor, Inc.      |                           |                                     | — |   |   |   | 13 |   |   |   | (3 | ) |   |   | 2 |   |   |   | 12 |   |
| Basic and diluted income (loss) per share from continuing |                           |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        operations           |                           | $                                        |         (0.06 | ) |   | $ |         0.09 |   |   | $ |         (0.06 | ) |   | $ |         0.01 |   |   | $ |         (0.02 | ) |

----

|                                                        | 2009 Fiscal Quarters (Unaudited)                                        |
|-------------------------------------------------------------|-------------------------------------------------------------------------|
|                                                        | First                                                                   |   | Second |   | Third |   | Fourth |   | 2009 |
|                                                        | (In millions, except share related data)       |
| Sales                                                       | $                                                                       | 957 |   |       | $ | 738 |   |       | $ | 683 |   |       | $ | 697 |   |       | $ | 3,075 |   |
| Cost of sales                                               |                                                                    | (869 | ) |   |   | (662 | ) |   |   | (622 | ) |   |   | (627 | ) |   |   | (2,780 | ) |
| Benefit (provision) for income taxes                        |                                                                    |      (643 | ) |   |   | 7 |   |   |   | (7 | ) |   |   | (27 | ) |   |   | (670 | ) |
| Loss from continuing operations attributable to             |                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        ArvinMeritor, Inc.     |                                                                    | (665 | ) |   |   | (25 | ) |   |   | (21 | ) |   |   | (36 | ) |   |   | (747 | ) |
| Net Loss attributable to ArvinMeritor, Inc.                 |                                                                    | (961 | ) |   |   | (49 | ) |   |   | (164 | ) |   |   | (14 | ) |   |   | (1,188 | ) |
| Basic and diluted loss per share from continuing operations | $                                                                       | (9.20 | ) |   | $ |      (0.34 | ) |   | $ |      (0.30 | ) |   | $ |      (0.50 | ) |   | $ |      (10.31 | ) |

----

|                                                                                                                                                                        | Year Ended September 30, |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------|
|                                                                                                                                                                        | 2010                     |       | 2009 |       | 2008 |
| OPERATING ACTIVITIES                                                                                                                                                        |                     |   |   |   |   |   |   |   |   |   |   |
| Net income (loss)                                                                                                                                                           | $                        | 26 |   |   | $ |      (1,176 | ) |   | $ | (90 | ) |
| Less: income (loss) from discontinued operations, net of tax                                                                                                                |                     | 14 |   |   |   | (438 | ) |   |   | (44 | ) |
|        Income (loss) from continuing operations                                                                                               |                     | 12 |   |   |   | (738 | ) |   |   | (46 | ) |
|        Adjustments to income (loss) from continuing operations to arrive at cash                                                              |                     |   |   |   |   |   |   |   |   |   |   |
|               provided by (used for) operating activities:                                                 |                     |   |   |   |   |   |   |   |   |   |   |
|                      Depreciation and amortization                      |                     | 70 |   |   |   | 70 |   |   |   | 76 |   |
|                      Asset impairment charges                           |                     | 2 |   |   |   | 14 |   |   |   | — |   |
|                      Restructuring costs, net of payments               |                     | (8 | ) |   |   | 33 |   |   |   | (4 | ) |
|                      Loss on debt extinguishment, net                   |                     | 13 |   |   |   | — |   |   |   | 3 |   |
|                      Deferred income tax expense (benefit)              |                     | (16 | ) |   |   | 641 |   |   |   | 82 |   |
|                      Equity in earnings of affiliates, net of dividends |                     | (37 | ) |   |   | 10 |   |   |   | (18 | ) |
|                      Stock compensation expense                         |                     | 7 |   |   |   | 10 |   |   |   | 7 |   |
|                      Provision for doubtful accounts                    |                     | 5 |   |   |   | 10 |   |   |   | 8 |   |
|                      Pension and retiree medical expense                |                     | 81 |   |   |   | 68 |   |   |   | 91 |   |
|        Pension and retiree medical contributions and settlements                                                                              |                     | (117 | ) |   |   | (95 | ) |   |   | (73 | ) |
|        Proceeds from terminations of interest rate swaps                                                                                      |                     | 7 |   |   |   | — |   |   |   | 28 |   |
|        Interest proceeds on note receivable                                                                                                   |                     | 12 |   |   |   | — |   |   |   | — |   |
|        Changes in off-balance sheet receivable securitization and factoring programs                                                          |                     | 60 |   |   |   | (257 | ) |   |   | 135 |   |
|        Changes in assets and liabilities, excluding effects of acquisitions, divestitures, foreign                                            |                     |   |   |   |   |   |   |   |   |   |   |
|               currency adjustments and discontinued operations:                                            |                     |   |   |   |   |   |   |   |   |   |   |
|               Receivables                                                                                  |                     |      (174 | ) |   |   | 486 |   |   |   | (61 | ) |
|               Inventories                                                                                  |                     | (62 | ) |   |   | 94 |   |   |   | (39 | ) |
|               Accounts payable                                                                             |                     | 187 |   |   |   | (349 | ) |   |   | 49 |   |
|               Other current assets and liabilities                                                         |                     | 118 |   |   |   | (97 | ) |   |   | (43 | ) |
|               Other assets and liabilities                                                                 |                     | (23 | ) |   |   | (63 | ) |   |   | 108 |   |
|        Operating cash flows provided by (used for) continuing operations                                                                      |                     | 137 |   |   |   | (163 | ) |   |   | 303 |   |
|        Operating cash flows provided by (used for) discontinued operations                                                                    |                     | 74 |   |   |   | (132 | ) |   |   |      (140 | ) |
| CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES                                                                                                                            | $                        | 211 |   |   | $ | (295 | ) |   | $ | 163 |   |
|                                                                                                                                                                        |                     |   |   |   |   |   |   |   |   |   |   |

|                                                                                         | September 30, |
|----------------------------------------------------------------------------------------------|---------------|
|                                                                                         | 2010          |   | 2009 |   | 2008 |
|                                                                                         | (In millions) |
| Balance sheet data:                                                                          |          |   |   |       |   |   |   |       |   |   |   |
|        Allowance for doubtful accounts                         | $             | 7 |   |   | $ | 13 |   |   | $ | 11 |   |
| Statement of operations data:                                                                |          |   |   |   |   |   |   |   |   |   |   |
|        Maintenance and repairs expense                         |          | 43 |   |   |   | 38 |   |   |   | 62 |   |
|        Research, development and engineering expense           |          | 68 |   |   |   | 54 |   |   |   | 57 |   |
|        Depreciation expense                                    |          | 66 |   |   |   | 66 |   |   |   | 73 |   |
|        Rental expense                                          |          | 15 |   |   |   | 19 |   |   |   | 13 |   |
|        Interest income                                         |          | 7 |   |   |   | 5 |   |   |   | 15 |   |
|        Interest expense                                        |          | (113 | ) |   |   | (98 | ) |   |   | (101 | ) |
| Statement of cash flows data:                                                                |          |   |   |   |   |   |   |   |   |   |   |
|        Interest payments                                       |          | 101 |   |   |   | 92 |   |   |   | 81 |   |
|        Income tax payments, net                                |          | 45 |   |   |   | 27 |   |   |   | 23 |   |
|        Non-cash investing activities - capital asset additions |          | 6 |   |   |   | 3 |   |   |   | 22 |   |

----

----

|                                                                                           | Fiscal Year Ended September 30, 2010 |
|------------------------------------------------------------------------------------------------|--------------------------------------|
|                                                                                           |                                 |   |   |   | Non- |   |   |   |   |
|                                                                                           | Parent                               |       | Guarantors |       | Guarantors |       | Elims |       | Consolidated |
| Sales                                                                                          |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        External                                                  | $                                    | — |   |   | $ | 1,365 |   |   | $ | 2,225 |   |   | $ | — |   |   | $ | 3,590 |   |
|        Subsidiaries                                              |                                 | — |   |   |   | 120 |   |   |   | 66 |   |   |   | (186 | ) |   |   | — |   |
| Total sales                                                                                    |                                 | — |   |   |   | 1,485 |   |   |   | 2,291 |   |   |   |      (186 | ) |   |   | 3,590 |   |
| Cost of sales                                                                                  |                                 | (55 | ) |   |   |      (1,279 | ) |   |   |      (2,023 | ) |   |   | 186 |   |   |   |      (3,171 | ) |
| GROSS MARGIN                                                                                   |                                 | (55 | ) |   |   | 206 |   |   |   | 268 |   |   |   | — |   |   |   | 419 |   |
|        Selling, general and administrative                       |                                 | (110 | ) |   |   | (76 | ) |   |   | (103 | ) |   |   | — |   |   |   | (289 | ) |
|        Restructuring costs                                       |                                 | — |   |   |   | — |   |   |   | (6 | ) |   |   | — |   |   |   | (6 | ) |
|        Asset impairments                                         |                                 | — |   |   |   | — |   |   |   | (2 | ) |   |   | — |   |   |   | (2 | ) |
|        Other operating expense                                   |                                 | (3 | ) |   |   | — |   |   |   | (3 | ) |   |   | — |   |   |   | (6 | ) |
| OPERATING INCOME (LOSS)                                                                        |                                 | (168 | ) |   |   | 130 |   |   |   | 154 |   |   |   | — |   |   |   | 116 |   |
|        Equity in earnings of affiliates                          |                                 | — |   |   |   | 22 |   |   |   | 26 |   |   |   | — |   |   |   | 48 |   |
|        Other income (expense), net                               |                                 | — |   |   |   | 18 |   |   |   | (16 | ) |   |   | — |   |   |   | 2 |   |
|        Interest income (expense), net                            |                                 |      (121 | ) |   |   | 38 |   |   |   | (23 | ) |   |   | — |   |   |   | (106 | ) |
| INCOME (LOSS) BEFORE INCOME                                                                    |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        TAXES                                                     |                                 | (289 | ) |   |   | 208 |   |   |   | 141 |   |   |   | — |   |   |   | 60 |   |
|        Provision for income taxes                                |                                 | — |   |   |   | (6 | ) |   |   | (42 | ) |   |   | — |   |   |   | (48 | ) |
|        Equity income from continuing operations                  |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|               of subsidiaries |                                 | 287 |   |   |   | 77 |   |   |   | — |   |   |   | (364 | ) |   |   | — |   |
| INCOME (LOSS) FROM CONTINUING                                                                  |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        OPERATIONS                                                |                                 | (2 | ) |   |   | 279 |   |   |   | 99 |   |   |   | (364 | ) |   |   | 12 |   |
| INCOME (LOSS) FROM DISCONTINUED                                                                |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        OPERATIONS, net of tax                                    |                                 | 14 |   |   |   | (2 | ) |   |   | 50 |   |   |   | (48 | ) |   |   | 14 |   |
| Net income                                                                                     |                                 | 12 |   |   |   | 277 |   |   |   | 149 |   |   |   | (412 | ) |   |   | 26 |   |
| Less: Net income attributable to                                                               |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        noncontrolling interests                                  |                                 | — |   |   |   | — |   |   |   | (14 | ) |   |   | — |   |   |   | (14 | ) |
| NET INCOME ATTRIBUTABLE                                                                        |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        TO ARVINMERITOR, INC.                                     | $                                    | 12 |   |   | $ | 277 |   |   | $ | 135 |   |   | $ | (412 | ) |   | $ | 12 |   |
|                                                                                           |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                                             | Fiscal Year Ended September 30, 2009 |
|--------------------------------------------------------------------------------------------------|--------------------------------------|
|                                                                                             |                                 |   |   |   |   |   |   |   | Non- |   |   |   |   |   |   |   |   |
|                                                                                             | Parent                               |       | Guarantors |       | Guarantors |       | Elims |       | Consolidated |
| Sales                                                                                            |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        External                                                    | $                                    | — |   |   | $ | 1,518 |   |   | $ | 1,557 |   |   | $ | — |   |   | $ | 3,075 |   |
|        Subsidiaries                                                |                                 | — |   |   |   | 91 |   |   |   | 128 |   |   |   | (219 | ) |   |   | — |   |
| Total sales                                                                                      |                                 | — |   |   |   | 1,609 |   |   |   | 1,685 |   |   |   |      (219 | ) |   |   | 3,075 |   |
| Cost of sales                                                                                    |                                 | (45 | ) |   |   |      (1,360 | ) |   |   |      (1,594 | ) |   |   | 219 |   |   |   |      (2,780 | ) |
| GROSS MARGIN                                                                                     |                                 | (45 | ) |   |   | 249 |   |   |   | 91 |   |   |   | — |   |   |   | 295 |   |
|        Selling, general and administrative                         |                                 | (67 | ) |   |   | (57 | ) |   |   | (85 | ) |   |   | — |   |   |   | (209 | ) |
|        Restructuring costs                                         |                                 | (6 | ) |   |   | (7 | ) |   |   | (48 | ) |   |   | — |   |   |   | (61 | ) |
|        Asset impairments                                           |                                 | (6 | ) |   |   | (8 | ) |   |   | — |   |   |   | — |   |   |   | (14 | ) |
|        Other operating expense                                     |                                 | (1 | ) |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (1 | ) |
| OPERATING INCOME (LOSS)                                                                          |                                 | (125 | ) |   |   | 177 |   |   |   | (42 | ) |   |   | — |   |   |   | 10 |   |
|        Equity in earnings of affiliates                            |                                 | — |   |   |   | 3 |   |   |   | 12 |   |   |   | — |   |   |   | 15 |   |
|        Other income (expense), net                                 |                                 | 53 |   |   |   | 8 |   |   |   | (61 | ) |   |   | — |   |   |   | — |   |
|        Interest income (expense), net                              |                                 | (124 | ) |   |   | 45 |   |   |   | (14 | ) |   |   | — |   |   |   | (93 | ) |
| INCOME (LOSS) BEFORE INCOME TAXES                                                                |                                 | (196 | ) |   |   | 233 |   |   |   | (105 | ) |   |   | — |   |   |   | (68 | ) |
|        Provision for income taxes                                  |                                 | (439 | ) |   |   | (124 | ) |   |   | (107 | ) |   |   | — |   |   |   | (670 | ) |
|        Equity loss from continuing operations of subsidiaries |                                 | (112 | ) |   |   | (224 | ) |   |   | — |   |   |   | 336 |   |   |   | — |   |
| LOSS FROM CONTINUING OPERATIONS                                                             |                                 | (747 | ) |   |   | (115 | ) |   |   | (212 | ) |   |   | 336 |   |   |   | (738 | ) |
| LOSS FROM DISCONTINUED OPERATIONS, net of tax                                                    |                                 | (441 | ) |   |   | (481 | ) |   |   | (63 | ) |   |   | 547 |   |   |   | (438 | ) |
| Net loss                                                                                         |                                 |      (1,188 | ) |   |   | (596 | ) |   |   | (275 | ) |   |   | 883 |   |   |   | (1,176 | ) |
| Less: Net income attributable to noncontrolling interests                                        |                                 | — |   |   |   | — |   |   |   | (12 | ) |   |   | — |   |   |   | (12 | ) |
| NET LOSS ATTRIBUTABLE TO                                                                         |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        ARVINMERITOR, INC.                                          | $                                    | (1,188 | ) |   | $ | (596 | ) |   | $ | (287 | ) |   | $ | 883 |   |   | $ | (1,188 | ) |

----

|                                                                                                 | Fiscal Year Ended September 30, 2008 |
|------------------------------------------------------------------------------------------------------|--------------------------------------|
|                                                                                                 |                                 |   |   |   |   |   |   |   | Non- |   |   |   |   |   |   |   |   |
|                                                                                                 | Parent                               |   | Guarantors |   | Guarantors |       | Elims |       | Consolidated |
| Sales                                                                                                |                                 |   |   |       |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |
|        External                                                        | $                                    |  — |   |   | $ | 1,847 |   |   | $ | 2,972 |   |   | $ | — |   |   | $ | 4,819 |   |
|        Subsidiaries                                                    |                                 | — |   |   |   | 117 |   |   |   | 84 |   |   |   |      (201 | ) |   |   | — |   |
| Total sales                                                                                          |                                 | — |   |   |   | 1,964 |   |   |   | 3,056 |   |   |   | (201 | ) |   |   | 4,819 |   |
| Cost of sales                                                                                        |                                 | (49 | ) |   |   |      (1,700 | ) |   |   |      (2,796 | ) |   |   | 201 |   |   |   |      (4,344 | ) |
| GROSS MARGIN                                                                                         |                                 | (49 | ) |   |   | 264 |   |   |   | 260 |   |   |   | — |   |   |   | 475 |   |
|        Selling, general and administrative                             |                                 | (91 | ) |   |   | (110 | ) |   |   | (107 | ) |   |   | — |   |   |   | (308 | ) |
|        Other operating expense                                         |                                 | (3 | ) |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (3 | ) |
| OPERATING INCOME (LOSS)                                                                              |                                 | (143 | ) |   |   | 154 |   |   |   | 153 |   |   |   | — |   |   |   | 164 |   |
|        Equity in earnings of affiliates                                |                                 | — |   |   |   | 18 |   |   |   | 19 |   |   |   | — |   |   |   | 37 |   |
|        Other income (expense), net                                     |                                 | 23 |   |   |   | 58 |   |   |   | (81 | ) |   |   | — |   |   |   | — |   |
|        Interest income (expense), net                                  |                                 | (90 | ) |   |   | 11 |   |   |   | (7 | ) |   |   | — |   |   |   | (86 | ) |
| INCOME (LOSS) BEFORE INCOME TAXES                                                                    |                                 | (210 | ) |   |   | 241 |   |   |   | 84 |   |   |   | — |   |   |   | 115 |   |
|        Benefit (provision) for income taxes                            |                                 | 88 |   |   |   | (162 | ) |   |   | (87 | ) |   |   | — |   |   |   | (161 | ) |
|        Equity income (loss) from continuing operations of subsidiaries |                                 | 65 |   |   |   | (46 | ) |   |   | — |   |   |   | (19 | ) |   |   | — |   |
| INCOME (LOSS) FROM CONTINUING OPERATIONS                                                        |                                 | (57 | ) |   |   | 33 |   |   |   | (3 | ) |   |   | (19 | ) |   |   | (46 | ) |
| INCOME (LOSS) FROM DISCONTINUED OPERATIONS, net of tax                                               |                                 | (48 | ) |   | $ | (33 | ) |   |   | 54 |   |   |   | (17 | ) |   |   | (44 | ) |
| Net income (loss)                                                                                    |                                 |      (105 | ) |   |   | — |   |   |   | 51 |   |   |   | (36 | ) |   |   | (90 | ) |
| Less: Net income attributable to noncontrolling interests                                            |                                 | — |   |   |   | — |   |   |   | (15 | ) |   |   | — |   |   |   | (15 | ) |
| NET LOSS ATTRIBUTABLE TO                                                                             |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        ARVINMERITOR, INC.                                              | $                                    | (105 | ) |   | $ |  — |   |   | $ | (36 | ) |   | $ | (36 | ) |   | $ | (105 | ) |

----

|                                                                                                                  |   | September 30, 2010 |
|-----------------------------------------------------------------------------------------------------------------------|--------|--------------------|
|                                                                                                                  |   |               |   |   |   |   |   |   |   | Non- |   |   |   |   |   |   |   |   |
|                                                                                                                  |   | Parent             |       | Guarantors |       | Guarantors |       | Elims |       | Consolidated |
| CURRENT ASSETS                                                                                                        |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        Cash and cash equivalents                                                        |   | $                  | 47 |   |   | $ | 6 |   |   | $ | 290 |   | $ | — |   |   | $ | 343 |   |
|        Receivables, net                                                                 |   |               | 4 |   |   |   | 14 |   |   |   | 561 |   |   | — |   |   |   | 579 |   |
|        Inventories                                                                      |   |               | — |   |   |   | 148 |   |   |   | 234 |   |   | — |   |   |   | 382 |   |
|        Other current assets                                                             |   |               | 17 |   |   |   | 20 |   |   |   | 39 |   |   | — |   |   |   | 76 |   |
|        Assets of discontinued operations                                                |   |               | — |   |   |   | 12 |   |   |   | 329 |   |   | — |   |   |   | 341 |   |
|               TOTAL CURRENT ASSETS                   |   |               | 68 |   |   |   | 200 |   |   |   | 1,453 |   |   | — |   |   |   | 1,721 |   |
| NET PROPERTY                                                                                                          |   |               | 10 |   |   |   | 122 |   |   |   | 257 |   |   | — |   |   |   | 389 |   |
| GOODWILL                                                                                                              |   |               | — |   |   |   | 275 |   |   |   | 157 |   |   | — |   |   |   | 432 |   |
| OTHER ASSETS                                                                                                          |   |               | 49 |   |   |   | 158 |   |   |   | 130 |   |   | — |   |   |   | 337 |   |
| INVESTMENTS IN SUBSIDIARIES                                                                                           |   |               | 1,011 |   |   |   | 154 |   |   |   | — |   |   | (1,165 | ) |   |   | — |   |
|               TOTAL ASSETS                           |   | $                  | 1,138 |   |   | $ |      909 |   |   | $ |      1,997 |   | $ |      (1,165 | ) |   | $ | 2,879 |   |
|                                                                                                                  |
| CURRENT LIABILITIES                                                                                                   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        Short-term debt                                                                  |   | $                  | — |   |   | $ | — |   |   | $ | — |   | $ | — |   |   | $ | — |   |
|        Accounts payable                                                                 |   |               | 36 |   |   |   | 186 |   |   |   | 448 |   |   | — |   |   |   | 670 |   |
|        Other current liabilities                                                        |   |               | 109 |   |   |   | 106 |   |   |   | 143 |   |   | — |   |   |   | 358 |   |
|        Liabilities of discontinued operations                                           |   |               | — |   |   |   | 9 |   |   |   | 353 |   |   | — |   |   |   | 362 |   |
|               TOTAL CURRENT LIABILITIES              |   |               | 145 |   |   |   | 301 |   |   |   | 944 |   |   | — |   |   |   | 1,390 |   |
| LONG-TERM DEBT                                                                                                        |   |               | 1,021 |   |   |   | — |   |   |   | 8 |   |   | — |   |   |   | 1,029 |   |
| RETIREMENT BENEFITS                                                                                                   |   |               | 974 |   |   |   | — |   |   |   | 188 |   |   | — |   |   |   | 1,162 |   |
| INTERCOMPANY PAYABLE (RECEIVABLE)                                                                                     |   |               | (41 | ) |   |   | (473 | ) |   |   | 514 |   |   | — |   |   |   | — |   |
| OTHER LIABILITIES                                                                                                     |   |               | 92 |   |   |   | 130 |   |   |   | 99 |   |   | — |   |   |   | 321 |   |
| NONCONTROLLING INTERESTS                                                                                              |   |               | — |   |   |   | — |   |   |   | 31 |   |   | — |   |   |   | 31 |   |
| EQUITY (DEFICIT) ATTRIBUTABLE TO                                                                                 |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        ARVINMERITOR, INC.                                                               |   |               |      (1,053 | ) |   |   | 951 |   |   |   | 213 |   |   | (1,165 | ) |   |   |      (1,054 | ) |
|               TOTAL LIABILITIES AND EQUITY (DEFICIT) |   | $                  | 1,138 |   |   | $ | 909 |   |   | $ | 1,997 |   | $ | (1,165 | ) |   | $ | 2,879 |   |
|                                                                                                                  |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                                                                  |   | September 30, 2009 |
|-----------------------------------------------------------------------------------------------------------------------|--------|--------------------|
|                                                                                                                  |   |               |   |   |   |   |   |   |   | Non- |   |   |   |   |       |   |   |   |
|                                                                                                                  |   | Parent             |       | Guarantors |       | Guarantors |       | Elims |   | Consolidated |
| CURRENT ASSETS                                                                                                        |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        Cash and cash equivalents                                                        |   | $                  | 7 |   |   | $ | 6 |   |   | $ | 82 |   | $ | — |   |   | $ | 95 |   |
|        Receivables, net                                                                 |   |               | 11 |   |   |   | 37 |   |   |   | 646 |   |   | — |   |   |   | 694 |   |
|        Inventories                                                                      |   |               | — |   |   |   | 133 |   |   |   | 241 |   |   | — |   |   |   | 374 |   |
|        Other current assets                                                             |   |               | 2 |   |   |   | 13 |   |   |   | 82 |   |   | — |   |   |   | 97 |   |
|        Assets of discontinued operations                                                |   |               | — |   |   |   | — |   |   |   | 56 |   |   | — |   |   |   | 56 |   |
|               TOTAL CURRENT ASSETS                   |   |               | 20 |   |   |   | 189 |   |   |   |      1,107 |   |   | — |   |   |   | 1,316 |   |
| NET PROPERTY                                                                                                          |   |               | 9 |   |   |   | 131 |   |   |   | 305 |   |   | — |   |   |   | 445 |   |
| GOODWILL                                                                                                              |   |               | — |   |   |   | 275 |   |   |   | 163 |   |   | — |   |   |   | 438 |   |
| OTHER ASSETS                                                                                                          |   |               | 43 |   |   |   | 149 |   |   |   | 114 |   |   | — |   |   |   | 306 |   |
| INVESTMENTS IN SUBSIDIARIES                                                                                           |   |               | 724 |   |   |   | 133 |   |   |   | — |   |   | (857 | ) |   |   | — |   |
|               TOTAL ASSETS                           |   | $                  | 796 |   |   | $ | 877 |   |   | $ | 1,689 |   | $ |      (857 | ) |   | $ | 2,505 |   |
|                                                                                                                  |
| CURRENT LIABILITIES                                                                                                   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        Short-term debt                                                                  |   | $                  | 2 |   |   | $ | — |   |   | $ | 95 |   | $ | — |   |   | $ | 97 |   |
|        Accounts payable                                                                 |   |               | 44 |   |   |   | 174 |   |   |   | 456 |   |   | — |   |   |   | 674 |   |
|        Other current liabilities                                                        |   |               | 111 |   |   |   | 35 |   |   |   | 265 |   |   | — |   |   |   | 411 |   |
|        Liabilities of discontinued operations                                           |   |               | — |   |   |   | — |   |   |   | 107 |   |   | — |   |   |   | 107 |   |
|               TOTAL CURRENT LIABILITIES              |   |               | 157 |   |   |   | 209 |   |   |   | 923 |   |   | — |   |   |   | 1,289 |   |
| LONG-TERM DEBT                                                                                                        |   |               | 993 |   |   |   | — |   |   |   | 2 |   |   | — |   |   |   | 995 |   |
| RETIREMENT BENEFITS                                                                                                   |   |               | 853 |   |   |   | — |   |   |   | 224 |   |   | — |   |   |   | 1,077 |   |
| INTERCOMPANY PAYABLE (RECEIVABLE)                                                                                     |   |               | (101 | ) |   |   |      (242 | ) |   |   | 343 |   |   | — |   |   |   | — |   |
| OTHER LIABILITIES                                                                                                     |   |               | 89 |   |   |   | 186 |   |   |   | 35 |   |   | — |   |   |   | 310 |   |
| NONCONTROLLING INTERESTS                                                                                              |   |               | — |   |   |   | — |   |   |   | 29 |   |   | — |   |   |   | 29 |   |
| EQUITY (DEFICIT) ATTRIBUTABLE TO                                                                                 |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        ARVINMERITOR, INC.                                                               |   |               |      (1,195 | ) |   |   | 724 |   |   |   | 133 |   |   | (857 | ) |   |   |      (1,195 | ) |
|               TOTAL LIABILITIES AND EQUITY (DEFICIT) |   | $                  | 796 |   |   | $ | 877 |   |   | $ | 1,689 |   | $ | (857 | ) |   | $ | 2,505 |   |
|                                                                                                                  |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                    | Fiscal Year Ended September 30, 2010 |
|-------------------------------------------------------------------------|--------------------------------------|
|                                                                    |                                 |   |   |   |   |   |   |   | Non- |   |   |   |   |   |   |   |
|                                                                    | Parent                               |       | Guarantors |       | Guarantors |       | Elims |       | Consolidated |
| CASH FLOWS PROVIDED BY (USED FOR)                                       |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        OPERATING ACTIVITIES               | $                                    | (176 | ) |   | $ | 19 |   |   | $ | 368 |   |   | $ |      — |   | $ | 211 |   |
|                                                                    |
| INVESTING ACTIVITIES                                                    |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital expenditures                                                    |                                 | (4 | ) |   |   |      (19 | ) |   |   | (33 | ) |   |   | — |   |   | (56 | ) |
| Other investing activities                                              |                                 | — |   |   |   | — |   |   |   | 5 |   |   |   | — |   |   | 5 |   |
| Net cash flows used for discontinued operations               |                                 | — |   |   |   | — |   |   |   | (13 | ) |   |   | — |   |   | (13 | ) |
| CASH USED FOR INVESTING ACTIVITIES                                      |                                 | (4 | ) |   |   | (19 | ) |   |   | (41 | ) |   |   | — |   |   | (64 | ) |
|                                                                    |
| FINANCING ACTIVITIES                                                    |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Payments on revolving credit facility, net                              |                                 | (28 | ) |   |   | — |   |   |   | — |   |   |   | — |   |   | (28 | ) |
| Payments on account receivable securitization program                   |                                 | — |   |   |   | — |   |   |   | (83 | ) |   |   | — |   |   | (83 | ) |
| Proceeds from debt and stock issuance                                   |                                 | 454 |   |   |   | — |   |   |   | — |   |   |   | — |   |   | 454 |   |
| Issuance and debt extinguishment costs                                  |                                 | (45 | ) |   |   | — |   |   |   | — |   |   |   | — |   |   | (45 | ) |
| Repayment of notes                                                      |                                 |      (193 | ) |   |   | — |   |   |   | — |   |   |   | — |   |   |      (193 | ) |
| Intercompany advances                                                   |                                 | 35 |   |   |   | — |   |   |   | (35 | ) |   |   | — |   |   | — |   |
| Other financing activities                                              |                                 | (3 | ) |   |   | — |   |   |   | 7 |   |   |   | — |   |   | 4 |   |
| Net cash flows used for discontinued operations                         |                                 | — |   |   |   | — |   |   |   | (12 | ) |   |   | — |   |   | (12 | ) |
| CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES                        |                                 | 220 |   |   |   | — |   |   |   |      (123 | ) |   |   | — |   |   | 97 |   |
|                                                                    |
| EFFECT OF FOREIGN CURRENCY EXCHANGE                                     |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        RATES ON CASH AND CASH EQUIVALENTS |                                 | — |   |   |   | — |   |   |   | 4 |   |   |   | — |   |   | 4 |   |
|                                                                    |
| CHANGE IN CASH AND CASH EQUIVALENTS                                     |                                 | 40 |   |   |   | — |   |   |   | 208 |   |   |   | — |   |   | 248 |   |
|                                                                    |
| CASH AND CASH EQUIVALENTS AT                                            |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        BEGINNING OF YEAR                  |                                 | 7 |   |   |   | 6 |   |   |   | 82 |   |   |   | — |   |   | 95 |   |
| CASH AND CASH EQUIVALENTS AT END OF                                     |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        YEAR                               | $                                    | 47 |   |   | $ | 6 |   |   | $ | 290 |   |   | $ | — |   | $ | 343 |   |

----

|                                                                    | Fiscal Year Ended September 30, 2009  |
|-------------------------------------------------------------------------|---------------------------------------|
|                                                                    |                                  |   |   |   |   |   |   |   | Non- |   |   |   |   |   |   |   |
|                                                                    | Parent                                |      | Guarantors |      | Guarantors |      | Elims |      | Consolidated |
| CASH FLOWS PROVIDED BY (USED FOR)                                       |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        OPERATING ACTIVITIES               | $                                     | 66 |   |   | $ | 5 |   |   | $ | (366 | ) |   | $ | — |   | $ | (295 | ) |
|                                                                    |
| INVESTING ACTIVITIES                                                    |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital expenditures                                                    |                                  | (1 | ) |   |   | (26 | ) |   |   | (55 | ) |   |   | — |   |   | (82 | ) |
| Other investing activities                                              |                                  | 6 |   |   |   | — |   |   |   | 3 |   |   |   | — |   |   | 9 |   |
| Net cash flows provided by discontinued operations                      |                                  | — |   |   |   | 3 |   |   |   | 84 |   |   |   | — |   |   | 87 |   |
| CASH PROVIDED BY (USED FOR) INVESTING                                   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        ACTIVITIES                         |                                  | 5 |   |   |   | (23 | ) |   |   | 32 |   |   |   | — |   |   | 14 |   |
|                                                                    |
| FINANCING ACTIVITIES                                                    |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Borrowings on revolving credit facility, net                            |                                  | 28 |   |   |   | — |   |   |   | — |   |   |   | — |   |   | 28 |   |
| Payments on prior accounts receivable securitization                    |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        program                            |                                  | — |   |   |   | — |   |   |   | (111 | ) |   |   | — |   |   | (111 | ) |
| Borrowings on new accounts receivable securitization                    |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        program                            |                                  | — |   |   |   | — |   |   |   | 83 |   |   |   | — |   |   | 83 |   |
| Repayment of notes and term loan                                        |                                  | (83 | ) |   |   | — |   |   |   | — |   |   |   | — |   |   | (83 | ) |
| Payments on lines of credit and other                                   |                                  | (2 | ) |   |   | — |   |   |   | (12 | ) |   |   | — |   |   | (14 | ) |
| Intercompany advances                                                   |                                  | (173 | ) |   |   | — |   |   |   | 173 |   |   |   | — |   |   | — |   |
| Net financing cash flows used for discontinued                          |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        operations                         |                                  | — |   |   |   | — |   |   |   | (1 | ) |   |   | — |   |   | (1 | ) |
| Cash dividends                                                          |                                  | (8 | ) |   |   | — |   |   |   | — |   |   |   | — |   |   | (8 | ) |
| CASH PROVIDED BY (USED FOR) FINANCING                                   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        ACTIVITIES                         |                                  | (238 | ) |   |   | — |   |   |   | 132 |   |   |   | — |   |   | (106 | ) |
| EFFECT OF FOREIGN CURRENCY EXCHANGE                                     |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        RATES ON CASH AND CASH EQUIVALENTS |                                  | — |   |   |   | — |   |   |   | (15 | ) |   |   | — |   |   | (15 | ) |
|                                                                    |
| CHANGE IN CASH AND CASH EQUIVALENTS                                     |                                  | (167 | ) |   |   | (18 | ) |   |   | (217 | ) |   |   | — |   |   | (402 | ) |
|                                                                    |
| CASH AND CASH EQUIVALENTS AT                                            |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        BEGINNING OF YEAR                  |                                  | 174 |   |   |   | 24 |   |   |   | 299 |   |   |   | — |   |   | 497 |   |
| CASH AND CASH EQUIVALENTS AT END OF                                     |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        YEAR                               | $       | 7 |   |   | $       | 6 |   |   | $       | 82 |   |   | $          | — |   | $       | 95 |   |
|                                                                    |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                    | Fiscal Year Ended September 30, 2008  |
|-------------------------------------------------------------------------|---------------------------------------|
|                                                                    |                                  |   |   |   |   |   |   |   | Non- |   |   |   |   |   |   |   |
|                                                                    | Parent                                |      | Guarantors |      | Guarantors |      | Elims |      | Consolidated |
| CASH FLOWS PROVIDED BY OPERATING                                        |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        ACTIVITIES                         | $                                     | 73 |   |   | $ | 41 |   |   | $ | 49 |   |   | $ | — |   | $ | 163 |   |
|                                                                    |
| INVESTING ACTIVITIES                                                    |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital expenditures                                                    |                                  | (4 | ) |   |   | (24 | ) |   |   | (70 | ) |   |   | — |   |   | (98 | ) |
| Acquisitions of businesses and investments, net of cash                 |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        acquired                           |                                  | — |   |   |   | — |   |   |   | (60 | ) |   |   | — |   |   | (60 | ) |
| Other investing activities                                              |                                  | 12 |   |   |   | — |   |   |   | 2 |   |   |   | — |   |   | 14 |   |
| Net cash flows provided by (used for) discontinued operations      |                                  | — |   |   |   | 2 |   |   |   | (18 | ) |   |   | — |   |   | (16 | ) |
| CASH PROVIDED BY (USED FOR) INVESTING                                   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        ACTIVITIES                         |                                  | 8 |   |   |   | (22 | ) |   |   | (146 | ) |   |   | — |   |   | (160 | ) |
|                                                                    |
| FINANCING ACTIVITIES                                                    |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Borrowings on prior accounts receivable securitization                  |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        program                            |                                  | — |   |   |   | — |   |   |   | 111 |   |   |   | — |   |   | 111 |   |
| Other financing activities                                              |                                  | (5 | ) |   |   | — |   |   |   | 6 |   |   |   | — |   |   | 1 |   |
| Debt issuance and extinguishment costs                                  |                                  | (6 | ) |   |   | — |   |   |   | — |   |   |   | — |   |   | (6 | ) |
| Intercompany advances                                                   |                                  | (49 | ) |   |   | — |   |   |   | 49 |   |   |   | — |   |   | — |   |
| Net financing cash flows provided by discontinued                       |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        operations                         |                                  | — |   |   |   | — |   |   |   | 20 |   |   |   |   |   |   | 20 |   |
| Cash dividends                                                          |                                  | (29 | ) |   |   | — |   |   |   | — |   |   |   | — |   |   | (29 | ) |
| CASH PROVIDED BY (USED FOR) FINANCING                                   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        ACTIVITIES                         |                                  | (89 | ) |   |   | — |   |   |   | 186 |   |   |   | — |   |   | 97 |   |
|                                                                    |
| EFFECT OF FOREIGN CURRENCY EXCHANGE                                     |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        RATES ON CASH AND CASH EQUIVALENTS |                                  | — |   |   |   | — |   |   |   | (12 | ) |   |   | — |   |   | (12 | ) |
|                                                                    |
| CHANGE IN CASH AND CASH EQUIVALENTS                                     |                                  | (8 | ) |   |   | 19 |   |   |   | 77 |   |   |   | — |   |   | 88 |   |
|                                                                    |
| CASH AND CASH EQUIVALENTS AT                                            |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        BEGINNING OF YEAR                  |                                  | 182 |   |   |   | 5 |   |   |   | 222 |   |   |   | — |   |   | 409 |   |
| CASH AND CASH EQUIVALENTS AT END OF                                     |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        YEAR                               | $       | 174 |   |   | $       | 24 |   |   | $       | 299 |   |   | $          | — |   | $          | 497 |   |
|                                                                    |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

----

| /s/     | DELOITTE & TOUCHE LLP |   |
|-----------------------------|---------------------------|--------|
|                        | DELOITTE & TOUCHE LLP |

----

|                                                        |                     | (column a)                                                                                           |                     |                 |                     | (column c)                         |
|-------------------------------------------------------------|--------------------------|------------------------------------------------------------------------------------------------------|--------------------------|----------------------|--------------------------|------------------------------------|
|                                                        |                     | Number of securities                                                                                 |                     | (column b)           |                     | Number of securities remaining     |
|                                                        |                     | to be issued upon                                                                                    |                     | Weighted average     |                     | available for future issuance      |
|                                                        |                     | exercise of outstanding                                                                              |                     | exercise price of    |                     | under equity compensation plans    |
|                                                        |                     | options, warrants and                                                                                |                     | outstanding options, |                     | (excluding securities reflected in |
| Plan Category                                               |      | rights1                                                                                              |      | warrants and rights  |      | column a)                          |
| Equity compensation plans approved by security holders      |                     | 1,186,259                                                                                            |                     |                 | 16.88                    |                               | 266,620 |
| Equity compensation plans not approved by security holders2 |                     | 215,602                                                                                              |                     |                 | 19.08                    |                               | — |
| Total                                                       |                     |                 1,401,861 | 3                        |                 | 17.22                    |                               | 266,620 |

----

| 1      |      | In addition to stock options, shares of Common Stock, restricted shares of Common Stock, restricted share units and performance shares have been awarded under the Company’s equity compensation plans and were outstanding at September 30, 2010.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|--------|--------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |
| 2      |                     | All of our equity compensation plans under which grants are outstanding, except the Employee Stock Benefit Plan, were approved by the shareholders of ArvinMeritor or by the shareholders of Meritor or Arvin prior to their merger into ArvinMeritor. The Employee Stock Benefit Plan was adopted by the Arvin board of directors in 1998 and was terminated in January 2007. It was intended to provide compensation arrangements that would attract, retain and reward key non- officer employees and to provide these employees with a proprietary interest in the company. This Plan provided for the issuance of incentive awards to non-officer employees in the form of stock options, tandem or non-tandem stock appreciation rights, restricted shares of Common Stock, performance shares or performance units. For further information, see the Plan document, which is filed as Exhibit 10-j to this Annual Report on Form 10-K. |
|   |
| 3      |                     | The table includes options granted under Arvin’s 1988 Stock Benefit Plan, 1998 Stock Benefit Plan and Employee Stock Benefit Plan, which we assumed in 2000 in connection with the merger of Arvin and Meritor. A total of 3,118,255 options, with a weighted average exercise price of $28.10, were assumed at the time of the merger.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |
| 4      |                     | The following number of shares remained available for issuance under our equity compensation plans at September 30, 2010. Grants under these plans may be in the form of any of the listed types of awards.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |

| Plan                           |      | Number of shares |      | Type of award                                                     |
|--------------------------------|--------------------------|------------------|--------------------------|-------------------------------------------------------------------|
| 2010 Long-Term Incentive Plan* |                     | 266,620          |                     | Stock options, stock appreciation rights, stock awards            |
|                           |                     |             |                     |        and other stock-based awards |

| * |      | The 2010 Long-Term Incentive Plan was approved by the Company’s shareowners on January 28, 2010. At that time, the 2007 Long-Term Incentive Plan and the 2004 Directors Stock Plan were terminated and no further awards will be made under those plans and no stock awards will be made under the Incentive Compensation Plan. The 2007 Long- Term Incentive Plan was approved by the company’s shareowners on January 26, 2007. At that time, the 1997 Long- Term Incentives Plan, 1998 Stock Benefit Plan and Employee Stock Benefit Plan were terminated, and no further awards will be made under these plans. |
|---|--------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                       |                     | Fiscal Year Ending September 30, |
|--------------------------------------------|--------------------------|----------------------------------|
|                                       |      | 2009                             |   | 2010 |
| Audit fees(a)                              |                     | $                                | 6,494,000 |   | $ | 6,158,000 |
| Audit-related fees(b)                      |                     |                             | 254,000 |   |   | 210,000 |
| Tax fees(c)                                |                     |                             | 3,045,000 |   |   | 2,052,000 |
| All other fees                             |                     |                             | — |   |   |   |
|        TOTAL |                     | $                                |      9,793,000 |   | $ |      8,420,000 |

----

| (a)    |                     | Includes fees related to compliance with Section 404 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                         |
|--------|--------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |
| (b)    |      | Audit related fees are primarily comprised of the following: fiscal year 2010 comfort letters to underwriters for debt and equity transactions; and fiscal year 2009 employee benefit plan audits and data validation related audit procedures. |
|   |
| (c)    |                     | Includes fees for tax consulting and compliance.                                                                                                                                                                                                |

|                     |                                            | Page |
|--------------------------|-------------------------------------------------|------|
|      | Schedule II - Valuation and Qualifying Accounts | S-1  |

| 3-a                                                    |   | Restated Articles of Incorporation of ArvinMeritor, filed as Exhibit 4.01 to ArvinMeritor’s Registration Statement on Form S-4, as amended (Registration Statement No. 333-36448) ("Form S-4"), is incorporated by reference. |
|--------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|           |   |
| 3-b                                                    |   | By-laws of ArvinMeritor, filed as Exhibit 3 to ArvinMeritor's Quarterly Report on Form 10-Q for the quarterly period ended June 29, 2003 (File No. 1-15983), is incorporated by reference.                                          |

----

| 4-a                                                                                              |   | Indenture, dated as of April 1, 1998, between ArvinMeritor and The Bank of New York Mellon Trust Company, N.A. (as successor to BNY Midwest Trust Company as successor to The Chase Manhattan Bank), as trustee, filed as Exhibit 4 to Meritor's Registration Statement on Form S-3 (Registration No. 333- 49777), is incorporated herein by reference.                                                                                                                                                                                                           |
|--------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                  |   |
| 4-b                                                                                              |   | First Supplemental Indenture, dated as of July 7, 2000, to the Indenture, dated as of April 1, 1998, between ArvinMeritor and The Bank of New York Mellon Trust Company, N.A. (as successor to BNY Midwest Trust Company as successor to The Chase Manhattan Bank), as trustee, filed as Exhibit 4-b-1 to ArvinMeritor's Annual Report on Form 10-K for the fiscal year ended September 30, 2000 (File No. 1-15983) (“2000 Form 10-K”), is incorporated herein by reference.                                                                          |
|                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 4-b-1                                                                                            |   | Third Supplemental Indenture, dated as of June 23, 2006, to the Indenture, dated as of April 1, 1998, between ArvinMeritor and The Bank of New York Mellon Trust Company, N.A. (as successor to BNY Midwest Trust Company as successor to The Chase Manhattan Bank), as trustee (including Subsidiary Guaranty dated as of June 23, 2006), filed as Exhibit 4.2 to ArvinMeritor’s Current Report on Form 8-K, dated June 23, 2006 and filed on June 27, 2006 (File No. 1-15983)(“June 23, 2006 Form 8-K”), is incorporated herein by reference. |
|                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 4-b-2                                                                                            |   | Fourth Supplemental Indenture, dated as of March 3, 2010, to the Indenture, dated as of April 1, 1998, between ArvinMeritor and The Bank of New York Mellon Trust Company, N.A. (as successor to BNY Midwest Trust Company as successor to The Chase Manhattan Bank), as trustee (including form of the Company’s 10.625% Notes due 2018 and form of subsidiary guaranty), filed as Exhibit 4 to ArvinMeritor’s Form 8-K filed on March 3, 2010 is incorporated herein by reference.                                                                  |
|                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 4-c                                                                                              |   | Indenture dated as of July 3, 1990, as supplemented by a First Supplemental Indenture dated as of March 31, 1994, between ArvinMeritor and The Bank of New York Mellon Trust Company, N.A. (as successor to BNY Midwest Trust Company as successor to Harris Trust and Savings Bank), as trustee, filed as Exhibit 4-4 to Arvin's Registration Statement on Form S-3 (Registration No. 33-53087), is incorporated herein by reference.                                                                                                                            |
|                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 4-c-1                                                                                            |   | Second Supplemental Indenture, dated as of July 7, 2000, to the Indenture dated as of July 3, 1990, between ArvinMeritor and The Bank of New York Mellon Trust Company, N.A. (as successor to BNY Midwest Trust Company as successor to Harris Trust and Savings Bank), as trustee, filed as Exhibit 4-c-1 to the 2000 Form 10-K, is incorporated herein by reference.                                                                                                                                                                                            |
|                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 4-c-2                                                                                            |   | Fourth Supplemental Indenture, dated as of June 23, 2006, to the Indenture, dated as of July 3, 1990, between ArvinMeritor and The Bank of New York Mellon Trust Company, N.A. (as successor to BNY Midwest Trust Company as successor to Harris Trust and Savings Bank), as trustee (including Subsidiary Guaranty dated as of June 23, 2006), filed as Exhibit 4.3 to the June 23, 2006 Form 8-K, is incorporated herein by reference.                                                                                                                          |
|                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 4-d                                                                                              |   | Indenture, dated as of March 7, 2006, between ArvinMeritor and The Bank of New York Mellon Trust Company, N.A. (as successor to BNY Midwest Trust Company), as trustee, filed as Exhibit 4.1 to ArvinMeritor’s Current Report on Form 8-K, dated March 7, 2006 and filed on March 9, 2006 (File No. 1-15983), is incorporated herein by reference.                                                                                                                                                                                                          |
|                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 4-d-1                                                                                            |   | First Supplemental Indenture, dated as of June 23, 2006, to the Indenture, dated as of March 7, 2006, between ArvinMeritor and The Bank of New York Mellon Trust Company, N.A. (as successor to BNY Midwest Trust Company), as trustee (including Subsidiary Guaranty dated as of June 23, 2006), filed as Exhibit 4.1 to the June 23, 2006 Form 8-K, is incorporated herein by reference.                                                                                                                                                                        |
|                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 4-e                                                                                              |   | Indenture, dated as of February 8, 2007, between ArvinMeritor and The Bank of New York Mellon Trust Company, N.A. (as successor to The Bank of New York Trust Company, N.A.), as trustee (including form of Subsidiary Guaranty dated as of February 8, 2007), filed as Exhibit 4-a to ArvinMeritor’s Quarterly Report on Form 10-Q for the quarterly period ended April 1, 2007 (File No. 1-15983), is incorporated herein by reference.                                                                                                                   |
|                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10-a                                                                                             |   | Credit Agreement, dated as of June 23, 2006, by and among ArvinMeritor, ArvinMeritor Finance Ireland, the institutions from time to time parties thereto as lenders, JP Morgan Chase Bank, National Association, as Administrative Agent, Citicorp North America, Inc. and UBS Securities LLC, as Syndication Agents, ABN AMRO Bank N.V., BNP Paribas and Lehman Commercial Paper Inc., as Documentation Agents, and J.P. Morgan Securities Inc. and                                                                                                              |

----

|                                                                                             |   | Citigroup Global Markets, as Joint Lead Arrangers and Joint Book Runners, filed as Exhibit 10.1 to the June 23, 2006 Form 8-K, is incorporated herein by reference.                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|--------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                  |   |
| 10-a-1                                                                                           |   | Subsidiary Guaranty, dated as of June 23, 2006, by and among the subsidiary guarantors and JPMorgan Chase Bank, National Association, as Administrative Agent, for the benefit of itself, the lenders and other holders of guaranteed obligations, filed as Exhibit 10.2 to the June 23, 2006 Form 8-K, is incorporated herein by reference. 10-a-2 Pledge and Security Agreement, dated as of June 23, 2006, by and among ArvinMeritor, the subsidiaries named therein and JPMorgan Chase Bank, National Association, as Administrative Agent, filed as Exhibit 10.3 to the June 23, 2006 Form 8-K, is incorporated herein by reference. |
|                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 10-a-3                                                                                           |   | Amendment No. 1 to Credit Agreement, dated as of February 23, 2007, among ArvinMeritor, the financial institutions party thereto and JPMorgan Chase Bank, National Association, as Administrative Agent, filed as Exhibit 10 to the Current Report on Form 8-K dated and filed on February 23, 2007 (File No. 1-15983), is incorporated herein by reference.                                                                                                                                                                                                                                                                              |
|                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 10-a-4                                                                                           |   | Amendment No. 2 to Credit Agreement, dated as of October 2, 2007, among ArvinMeritor, the financial institutions party thereto and JPMorgan Chase Bank, National Association, as Administrative Agent, filed as Exhibit 10 to the Current Report on Form 8-K dated October 2, 2007 and filed on October 3, 2007 (File No. 1-15983), is incorporated herein by reference.                                                                                                                                                                                                                                                                  |
|                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 10-a-5                                                                                           |   | Amendment No. 3 to Credit Agreement, dated as of October 26, 2007, among ArvinMeritor, the financial institutions party thereto and JPMorgan Chase Bank, National Association, as Administrative Agent, filed as Exhibit 10 to the Current Report on Form 8-K dated October 26, 2007 and filed on October 30, 2007 (File No. 1-15983), is incorporated herein by reference.                                                                                                                                                                                                                                                               |
|                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 10-a-6                                                                                           |   | Amendment No. 4 to Credit Agreement, dated as of December 10, 2007, among ArvinMeritor, the financial institutions party thereto and JPMorgan Chase Bank, National Association, as Administrative Agent, filed as Exhibit 10 to the Current Report on Form 8-K filed on December 11, 2007 is incorporated herein by reference.                                                                                                                                                                                                                                                                                                            |
|                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 10-a-7                                                                                           |   | Amendment No. 5 to Credit Agreement, dated as of February 5, 2010, among ArvinMeritor, AFI, the financial institutions party thereto and JPMorgan Chase Bank, National Association, as Administrative Agent, filed as Exhibit 10a to ArvinMeritor’s Form 8-K filed on February 10, 2010 is incorporated herein by reference.                                                                                                                                                                                                                                                                                                        |
|                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| *10-b-1                                                                                          |   | 1997 Long-Term Incentives Plan, as amended and restated, filed as Exhibit 10 to ArvinMeritor’s Current Report on Form 8-K dated and filed on April 20, 2005 (File No. 1-15983), is incorporated herein by reference.                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| *10-b-2                                                                                          |   | Form of Restricted Stock Agreement under the 1997 Long-Term Incentives Plan, filed as Exhibit 10-a-2 to Meritor’s Annual Report on Form 10-K for the fiscal year ended September 30, 1997 (File No. 1-13093), is incorporated herein by reference.                                                                                                                                                                                                                                                                                                                                                                                  |
|                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| *10-b-3                                                                                          |   | Form of Option Agreement under the 1997 Long-Term Incentives Plan, filed as Exhibit 10(a) to Meritor's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 1998 (File No. 1-13093), is incorporated herein by reference.                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| *10-b-4                                                                                          |   | Form of Performance Share Agreement under the 1997 Long-Term Incentives Plan, filed as Exhibit 10-b to ArvinMeritor’s Current Report on Form 8-K, dated December 7, 2004 and filed on December 9, 2004 (File No. 1-15983), is incorporated herein by reference.                                                                                                                                                                                                                                                                                                                                                                     |
|                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| *10-b-5                                                                                          |   | Description of Performance Goals Established in connection with 2009-2011 Cash Performance Plan under the 1997 Long- Term Incentives Plan, filed as Exhibit 10-a to ArvinMeritor’s Current Report on Form 8-K, dated December 9, 2008 (File No. 1-15983), is incorporated herein by reference.                                                                                                                                                                                                                                                                                                                                      |
|                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| *10-b-6                                                                                          |   | Description of Performance Goals for fiscal year 2011 Established in connection with Cash Performance Plans under Long Term Incentive Plans.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |

----

| *10-b-7                                                                                          |   | Description of Annual Incentive Goals Established for Fiscal year 2011 under the Incentive Compensation Plan.                                                                                                                                                                |
|--------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                  |   |
| *10-b-7a                                                                                         |   | Description of Performance Goals established in connection with 2010-2012 Cash Performance Plan, filed as Exhibit 10-b to Current Report on Form 8-K filed on November 12, 2009 is incorporated herein by reference.                                                         |
|                                                                                             |   |                                                                                                                                                                                                                                                                         |
| *10-c                                                                                            |   | 2007 Long-Term Incentive Plan, as amended, filed as Exhibit 10-a to ArvinMeritor’s Quarterly Report on Form 10-Q for the quarterly period ended April 1, 2007 (File No. 1-15983), is incorporated herein by reference.                                                 |
|                                                                                             |   |                                                                                                                                                                                                                                                                         |
| *10-c-1                                                                                          |   | Form of Restricted Stock Agreement under the 2007 Long-Term Incentive Plan, filed as Exhibit 10-c-1 to ArvinMeritor’s Annual Report on Form 10-K for the fiscal year ended September 30, 2007 is incorporated herein by reference.                                     |
|                                                                                             |   |                                                                                                                                                                                                                                                                         |
| *10-d                                                                                            |   | Description of Compensation of Non-Employee Directors.                                                                                                                                                                                                                       |
|                                                                                             |   |                                                                                                                                                                                                                                                                         |
| *10-e                                                                                            |   | 2004 Directors Stock Plan, filed as Exhibit 10-a to ArvinMeritor’s Quarterly Report on Form 10-Q for the quarterly period ended March 28, 2004 (File No. 1-15983), is incorporated herein by reference.                                                                |
|                                                                                             |   |                                                                                                                                                                                                                                                                         |
| *10-e-1                                                                                          |   | Form of Restricted Share Unit Agreement under the 2004 Directors Stock Plan, filed as Exhibit 10-c-3 to ArvinMeritor’s Annual Report on Form 10-K for the fiscal year ended October 3, 2004 (File No. 1-15983), is incorporated herein by reference.                   |
|                                                                                             |   |                                                                                                                                                                                                                                                                         |
| *10-e-2                                                                                          |   | Form of Restricted Stock Agreement under the 2004 Directors Stock Plan, filed as Exhibit 10-c-4 to ArvinMeritor’s Annual Report on Form 10-K for the fiscal year ended October 2, 2005 (Filed No. 1-15983), is incorporated herein by reference.                       |
|                                                                                             |   |                                                                                                                                                                                                                                                                         |
| *10-e-3                                                                                          |   | Option Agreement under the 2007 Long-Term Incentive Plan between ArvinMeritor and Charles G. McClure filed as Exhibit 10-c to ArvinMeritor’s Quarterly report on Form 10-Q for the quarterly period ended June 30, 2008 is incorporated herein by reference.           |
|                                                                                             |   |                                                                                                                                                                                                                                                                         |
| *10-e-4                                                                                          |   | Restricted Stock Agreement under the 2007 Long-term Incentive Plan between ArvinMeritor and Charles G. McClure filed as Exhibit 10-d to ArvinMeritor’s Quarterly Report on form 10-Q for the quarterly period ended June 30, 2008 is incorporated herein by reference. |
|                                                                                             |   |                                                                                                                                                                                                                                                                         |
| *10-e-5                                                                                          |   | Letter Agreement, dated January 15, 2010, with former executive officer filed as Exhibit 10.l to ArvinMeritor’s Report on Form 10-Q for the fiscal quarter ended January 3, 2009 is incorporated herein by reference.                                                  |
|                                                                                             |   |                                                                                                                                                                                                                                                                         |
| *10-e-6                                                                                          |   | Form of Restricted Stock Unit Agreement for Employees under 2010 Long-Term Incentive Plan filed as Exhibit 10.2 to ArvinMeritor’s Report on Form 10-Q for the fiscal quarter ended January 3, 2009 is incorporated herein by reference.                                |
|                                                                                             |   |                                                                                                                                                                                                                                                                         |
| *10-e-7                                                                                          |   | Form of Restricted Stock Unit Agreement for Directors under 2010 Long-Term Incentive Plan filed as Exhibit 10.3 to ArvinMeritor’s Report on Form 10-Q for the fiscal quarter ended January 3, 2009 is incorporated herein by reference.                                |
|                                                                                             |   |                                                                                                                                                                                                                                                                         |
| *10-e-8                                                                                          |   | Form of Restricted Stock Agreement for Directors under 2010 Long-term Incentive Plan filed as Exhibit 10.4 to ArvinMeritor’s Report on Form 10-Q for the fiscal quarter ended January 3, 2009 is incorporated herein by reference.                                     |
|                                                                                             |   |                                                                                                                                                                                                                                                                         |
| *10-e-9                                                                                          |   | 2010 Long-Term Incentive Plan filed as Exhibit 10.5 to ArvinMeritor’s Report on Form 10-Q for the fiscal quarter ended January 3, 2009 is incorporated herein by reference.                                                                                            |
|                                                                                             |   |                                                                                                                                                                                                                                                                         |
| *10-f                                                                                            |   | Incentive Compensation Plan, as amended and restated, filed as Exhibit 10.6 to ArvinMeritor’s Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 2010 is incorporated herein by reference.                                                        |
|                                                                                             |   |                                                                                                                                                                                                                                                                         |
| *10-f-1                                                                                          |   | Form of Deferred Share Agreement, filed as Exhibit 10-a to ArvinMeritor’s Quarterly Report on Form 10-Q for the quarterly period ended January 2, 2005 (File No. 1-15983), is incorporated herein by reference.                                                        |
|                                                                                             |   |                                                                                                                                                                                                                                                                         |
| *10-g                                                                                            |   | Copy of resolution of the Board of Directors of ArvinMeritor, adopted on July 6, 2000, providing for its Deferred Compensation Policy for Non-Employee Directors, filed as Exhibit 10-f to the 2000 Form 10-K, is incorporated herein by reference.                          |

----

| *10-h                                                                                            |   | Deferred Compensation Plan, filed as Exhibit 10-e-1 to Meritor's Annual Report on Form 10-K for the fiscal year ended September 30, 1998 (File No. 1-13093), is incorporated herein by reference.                                                                                                                                                                                                                                      |
|--------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                  |   |
| *10-i                                                                                            |   | 1998 Stock Benefit Plan, as amended, filed as Exhibit (d)(2) to ArvinMeritor's Schedule TO, Amendment No. 3 (File No. 5-61023), is incorporated herein by reference.                                                                                                                                                                                                                                                                   |
|                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| *10-j                                                                                            |   | Employee Stock Benefit Plan, as amended, filed as Exhibit (d)(3) to ArvinMeritor’s Schedule TO, Amendment No. 3 (FileNo. 5-61023), is incorporated herein by reference.                                                                                                                                                                                                                                                          |
|                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| *10-k                                                                                            |   | 1988 Stock Benefit Plan, as amended, filed as Exhibit 10 to Arvin's Quarterly Report on Form 10-Q for the quarterly period ended July 3, 1988, and as Exhibit 10(E) to Arvin's Quarterly Report on Form 10-Q for the quarterly period ended July 4, 1993 (File No. 1-302), is incorporated herein by reference.                                                                                                                        |
|                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10-l                                                                                             |   | Loan and Security Agreement dated as of September 8, 2009 among ArvinMeritor Receivables Corporation, ArvinMeritor, Inc., GMAC Commercial Finance LLC, and the Lenders from time to time party thereto (the "Loan Agreement"), dated September 8, 2009 and filed as exhibit 10a to ArvinMeritor’s Current Report on Form 8-K filed on September 10, 2009, is incorporated herein by reference.                                   |
|                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10-l-1                                                                                           |   | First Amendment dated as of October 14, 2010 to the Loan Agreement dated as of September 8, 2009 by and among ArvinMeritor Receivables Corporation, ArvinMeritor, Inc., GMAC Commercial Finance LLC, and the Lenders from time to time party thereto filed as Exhibit 10a to the Current Report on Form 8-K filed October 18, 2010 is incorporated herein by reference.                                                                |
|                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10-m                                                                                             |   | Third Amended and Restated Purchase and Sale Agreement dated as of September 8, 2009 (the "Purchase Agreement") among ArvinMeritor Receivables Corporation and Meritor Heavy Vehicle Braking Systems (U.S.A.), Inc. and Meritor Heavy Vehicle Systems LLC, filed as exhibit 10b to ArvinMeritor’s Current Report on Form 8-K, dated September 8, 2009 and filed on September 10, 2009, is incorporated herein by reference.      |
|                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10-m-1                                                                                           |   | Second Amendment dated as of October 29, 2010 to Loan Agreement dated as of September 8, 2009, as amended, by and among ArvinMeritor, Inc., ArvinMeritor Receivables Corporation, the Lenders from time to time party thereto and., GMAC Commercial Finance LLC, as Administrative Agent filed as Exhibit 10a to the Current Report on Form 8-K dated October 29, 2010 and filed November 2, 2010 is incorporated herein by reference. |
|                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10-m-2 -                                                                                         |   | First Amendment to Third Amended and Restated Purchase and Sale Agreement dated as of October 29, 2010 (the "Purchase Agreement") among ArvinMeritor Receivables Corporation and Meritor Heavy Vehicle Braking Systems (U.S.A.), Inc. and Meritor Heavy Vehicle Systems LLC filed as Exhibit 10b to the Current Report on Form 8-K dated October 29, 2010 and filed November 2, 2010 is incorporated herein by reference.              |
|                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| *10-n                                                                                            |   | Employment agreement between the company and Charles G. McClure, Jr., dated as of September 14, 2009 filed as Exhibit 10.n to ArvinMeritor’s Form 10-K for the fiscal year ended September 27, 2009 is incorporated herein by reference.                                                                                                                                                                                         |
|                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| *10-o                                                                                            |   | Employment agreement between the company and James D. Donlon, III, filed as Exhibit 10b to ArvinMeritor’s Current Report on Form 8-K, dated September 14, 2009 and filed on September 18, 2009 (File No. 1-15983), is incorporated by reference.                                                                                                                                                                                 |
|                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| *10-q                                                                                            |   | Employment agreement, dated August 23, 2006, between ArvinMeritor and Carsten J. Reinhardt, dated as of September 14, 2009 filed as Exhibit 10-q to ArvinMeritor’s Form 10-K for the fiscal year ended September 27, 2009 is incorporated herein by reference.                                                                                                                                                                   |
|                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| *10-r                                                                                            |   | Employment agreement, dated as of September 14, 2009, between ArvinMeritor and Jeffrey A. Craig filed as Exhibit 10-r to ArvinMeritor’s Form 10-K for the fiscal year ended September 27, 2009 is incorporated herein by reference.                                                                                                                                                                                              |

----

| *10-s                                                                                            |   | Employment agreement, dated as of September 14, 2009, between ArvinMeritor and Vernon Baker filed as Exhibit 10-s to ArvinMeritor’s Form 10-K for the fiscal year ended September 27, 2009 is incorporated herein by reference.                                                                                             |
|--------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                  |   |
| *10-t                                                                                            |   | Employment agreement, dated as of September 14, 2009, between ArvinMeritor and Mary Lehmann filed as Exhibit 10-t to ArvinMeritor’s Form 10-K for the fiscal year ended September 27, 2009 is incorporated herein by reference.                                                                                             |
|                                                                                             |   |                                                                                                                                                                                                                                                                                                                              |
| *10-u                                                                                            |   | Employment agreement, dated as of September 14, 2009, between ArvinMeritor and Lin Cummins filed as Exhibit 10-u to ArvinMeritor’s Form 10-K for the fiscal year ended September 27, 2009 is incorporated herein by reference.                                                                                              |
|                                                                                             |   |                                                                                                                                                                                                                                                                                                                              |
| *10-v                                                                                            |   | Employment agreement, dated as of September 14, 2009, between ArvinMeritor and Barbara Novak filed as Exhibit 10-v to ArvinMeritor’s Form 10-K for the fiscal year ended September 27, 2009 is incorporated herein by reference.                                                                                            |
|                                                                                             |   |                                                                                                                                                                                                                                                                                                                              |
| *10-w                                                                                            |   | Form of employment letter between ArvinMeritor and its executives, filed as Exhibit 10-a to ArvinMeritor’s Current Report on Form 8-K, dated September 14, 2009 and filed on September 18, 2009 (File No. 1-15983), is incorporated by reference.                                                                           |
|                                                                                             |   |                                                                                                                                                                                                                                                                                                                              |
| *10-w-1                                                                                          |   | Letter Agreement dated as of July 1, 2010 between ArvinMeritor and Larry Ott filed as Exhibit 10 to ArvinMeritor’s Quarterly Report on Form 10-Q for the fiscal quarter ended July 4, 2010 is incorporated herein by reference.                                                                                             |
|                                                                                             |   |                                                                                                                                                                                                                                                                                                                              |
| *10-w-2                                                                                          |   | Employment Agreement between ArvinMeritor and Larry Ott dated as of August 3, 2010 filed as Exhibit 10-1 to ArvinMeritor’s Quarterly Report on Form 10-Q for the fiscal quarter ended July 4, 2010 is incorporated herein by reference.                                                                                     |
|                                                                                             |   |                                                                                                                                                                                                                                                                                                                              |
| *10-w-3                                                                                          |   | Employment Agreement between ArvinMeritor and Timothy Bowes dated as of April 28, 2010 filed as Exhibit 10-1 to ArvinMeritor’s Quarterly Report on Form 10-Q for the fiscal quarter ended April 4, 2010 is incorporated herein by reference.                                                                                |
|                                                                                             |   |                                                                                                                                                                                                                                                                                                                              |
| *10-w-4                                                                                          |   | Employment Agreement between ArvinMeritor, Inc. and Joseph Mejaly dated as of April 28, 2010 filed as Exhibit 10-2 to ArvinMeritor’s Quarterly Report on Form 10-Q for the fiscal quarter ended April 4, 2010 is incorporated herein by reference.                                                                          |
|                                                                                             |   |                                                                                                                                                                                                                                                                                                                              |
| 10-x                                                                                             |   | Receivables Purchase Agreement dated November 19, 2007 between ArvinMeritor CVS Axles France and Viking Asset Purchaser and CitiCorp Trustee Company Limited, filed as Exhibit 10-t to ArvinMeritor’s Report on Form 10-K for the fiscal year ended September 30, 2008 is incorporated herein by reference.                 |
|                                                                                             |   |                                                                                                                                                                                                                                                                                                                              |
| 10-y                                                                                             |   | Receivables Purchase Agreement dated March 13, 2006 between Meritor HVS AB and Nordic Finance Limited and CitiCorp Trustee Company Limited filed as Exhibit 10-u to ArvinMeritor’s Report on Form 10-K for the fiscal year ended September 30, 2008 is incorporated herein by reference                                     |
|                                                                                             |   |                                                                                                                                                                                                                                                                                                                              |
| 10-z                                                                                             |   | Amendment, dated July 25, 2007, to Receivables Purchase Agreement dated March 13, 2006 between Meritor HVS AB and Nordic Finance Limited and CitiCorp Trustee Company Limited filed as Exhibit 10-v to ArvinMeritor’s Report on Form 10-K for the fiscal year ended September 30, 2008 is incorporated herein by reference. |
|                                                                                             |   |                                                                                                                                                                                                                                                                                                                              |
| 10-zz                                                                                            |   | Purchase and Sale Agreement dated August 4, 2009 among ArvinMeritor, Iochpe-Maxion, S.A. and the other parties listed therein, filed as Exhibit 10 to ArvinMeritor’s Report on Form 10-Q for the Quarter ended June 28, 2009 is incorporated by reference.                                                                  |
|                                                                                             |   |                                                                                                                                                                                                                                                                                                                              |
| 12                                                                                               |   | Computation of ratio of earnings to fixed charges                                                                                                                                                                                                                                                                                 |
|                                                                                             |   |                                                                                                                                                                                                                                                                                                                              |
| 21                                                                                               |   | List of Subsidiaries of ArvinMeritor, Inc.                                                                                                                                                                                                                                                                                        |
|                                                                                             |   |                                                                                                                                                                                                                                                                                                                              |
| 23-a                                                                                             |   | Consent of Vernon G. Baker, II, Esq., Senior Vice President and General Counsel                                                                                                                                                                                                                                                   |
|                                                                                             |   |                                                                                                                                                                                                                                                                                                                              |
| 23-b                                                                                             |   | Consent of Deloitte & Touche LLP, independent registered public accounting firm                                                                                                                                                                                                                                               |
|                                                                                             |   |                                                                                                                                                                                                                                                                                                                              |
| 23-c                                                                                             |   | Consent of Bates White LLC                                                                                                                                                                                                                                                                                                        |
|                                                                                             |   |                                                                                                                                                                                                                                                                                                                              |
| 24                                                                                               |   | Power of Attorney authorizing certain persons to sign this Annual Report on Form 10-K on behalf of certain directors and officers of ArvinMeritor.                                                                                                                                                                                |

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| 31-a                                                                                             |   | Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) under the Exchange Act.                            |
|--------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------|
|                  |   |
| 31-b                                                                                             |   | Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) under the Exchange Act.                            |
|                                                                                             |   |                                                                                                                       |
| 32-a                                                                                             |   | Certification of the Chief Executive Officer pursuant to Rule 13a-14(b) under the Exchange Act and 18 U.S.C. Section 1350. |
|                                                                                             |   |                                                                                                                       |
| 32-b                                                                                             |   | Certification of the Chief Financial Officer pursuant to Rule 13a-14(b) under the Exchange Act and 18 U.S.C. Section 1350. |

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| ARVINMERITOR, INC. |
|--------------------|
|               |   |
| By:           | /s/ Vernon G. Baker, II |   |
|               |        Vernon G. Baker, II |
|               |        Senior Vice President and General Counsel |

|      | Charles G. McClure, Jr. *                   | Chairman of the Board, Chief Executive Officer and President |
|--------------------------|---------------------------------------------|--------------------------------------------------------------|
|                     |                                        | (principal executive officer) and Director                   |
|                     |                                        |                                                         |
|                     | Joseph B. Anderson, Jr., Rhonda L. Brooks,  | Directors                                                    |
|                     | David W. Devonshire, Ivor J. Evans,         |                                                         |
|                     | Victoria B. Jackson, James E. Marley,       |                                                         |
|                     | William R. Newlin, and Steven G. Rothmeier* |                                                         |
|                     |                                        |                                                         |
|                     | Jeffrey A. Craig*                           | Senior Vice President and Chief Financial Officer            |
|                     |                                        |                                                         |
|                     | Daniel R. Hopgood*                          | Controller (principal accounting officer)                    |

| * By:  | /s/ Barbara Novak                                        |   |   |
|-------------|----------------------------------------------------------|--------|--------|
|        |        Barbara Novak       |
|        |        Attorney-in-fact ** |

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|                                   |                     | Balance at        |                     | Charged to costs and |                     | Other      |                     | Balance at End |
|----------------------------------------|--------------------------|-------------------|--------------------------|----------------------|--------------------------|------------|--------------------------|----------------|
| Description (In millions)              |      | Beginning of Year |      | expenses             |      | Deductions |      | of year        |
| Year ended September 30, 2010:         |                     |              |                     |                 |                     |       |                     |           |   |   |   |   |   |   |
| Allowance for doubtful accounts        |                     | $                 | 13                       |                 | $                        | 5          |                     | $              |      (11 | )     | (a) |   | $ | 7 |
| Deferred tax asset valuation allowance |                     |              | 1,187                    |                 |                     | 52         |                     |           | (22 | ) | (b) |   |   | 1,217 |
|                                   |                     |              |                     |                 |                     |       |                     |           |   |   |   |   |   |   |
| Year ended September 30, 2009:         |                     |              |                     |                 |                     |       |                     |           |   |   |   |   |   |   |
| Allowance for doubtful accounts        |                     | $                 | 11                       |                 | $                        | 10         |                     | $              | (8 | ) | (a) |   | $ | 13 |
| Deferred tax asset valuation allowance |                     |              | 271                      |                 |                     | 701        |                     |           | 215 |   | (b) |   |   | 1,187 |
|                                   |                     |              |                     |                 |                     |       |                     |           |   |   |   |   |   |   |
| Year ended September 30, 2008:         |                     |              |                     |                 |                     |       |                     |           |   |   |   |   |   |   |
| Allowance for doubtful accounts        |                     | $                 | 17                       |                 | $                        | 8          |                     | $              | (14 | ) | (a) |   | $ | 11 |
| Deferred tax asset valuation allowance |                     |              | 204                      |                 |                     | 66         |                     |           | 1 |   |   |   |   | 271 |

| (a)    |                     | Uncollectible accounts written off                                                  |
|--------|--------------------------|-------------------------------------------------------------------------------------|
|   |
| (b)    |      | Primarily relates to revaluation of defined pension and retiree medical obligations |

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